Key Highlights

● Apple slid on Friday, closing at $336.64, down $3.78, as a media report cited iPhone 18 Pro component order cuts.

● The report said Apple told suppliers to cut October component production by roughly a sixth to a fifth from plans.

● The iPhone 18 Pro and Pro Max launched at $1,199 and $1,299, with no base iPhone 18 until early 2027.

● Skyworks Solutions fell sharply and HP also fell as the Dow rose 423.31 points to 51,654.95.

Apple (NASDAQ:AAPL) slid on Friday, closing at $336.64, down $3.78, after a media report said the company told suppliers to cut October component production for the iPhone 18 Pro and Pro Max by roughly a sixth to a fifth from original plans. According to the report, Demand had come in weaker than expected after price increases driven by higher memory costs.

The stock was down more heavily before the opening bell and recovered some ground during the session, but still finished as one of the Dow Jones Industrial Average's notable decliners.

The product backdrop

The iPhone 18 Pro and Pro Max launched at $1,199 and $1,299 respectively. Unlike in past years, there is no base iPhone 18 until early 2027, which puts more of the company's near-term iPhone sales on its premium models. Any sign of softer demand for the Pro line therefore draws close scrutiny.

Rising memory chip prices have been a theme across technology hardware. Memory makers have benefited from strong demand tied to artificial intelligence data centers, which in turn has raised component costs for device makers.

Suppliers felt it too

The report rippled through Apple's Supply chain. Skyworks Solutions (NASDAQ:SWKS), which supplies radio-frequency chips used in iPhones, fell sharply, a move one market report tied to the reports of order cuts. Separately, HP (NYSE:HPQ) also fell; One market report linked that decline to PC-volume worries, though the reason was not clear-cut.

Not everyone took a downbeat view of Apple's prospects. Analyst Dan Ives said: "In our view, Apple will be the toll collector on the consumer AI highway".

Against a rising market

Apple's decline came on a positive day for the broader market. The Dow gained 423.31 points to 51,654.95, the S&P 500 rose 46.18 points to 7,811.54 and the Nasdaq Composite added 172.83 points to 27,366.17. Software stocks rebounded strongly from Thursday's sell-off, which followed a media report that OpenAI's annualized Revenue was about $50 billion, roughly $20 billion below a figure that had circulated earlier. Microsoft (NASDAQ:MSFT) climbed $12.46 and Amazon (NASDAQ:AMZN) gained $8.37, while chipmakers lagged.

Consumer data offered little comfort for a company selling premium devices. The University of Michigan's preliminary October sentiment index fell to 46.3, a five-month low. "Frustration over cost-of-living continues to mount," said Joanne Hsu, director of the survey. The 10-year Treasury Yield held near a 24-year high, and the Fed raised rates in September for the first time since 2023.

Apple's slide also weighed on the Nasdaq-100, which rose 157.34 points to 30,883.15 but lagged the Dow. The week was a reminder that Leadership has shifted: semiconductors fell sharply over the five sessions while software gained, according to market data. Apple remains one of the largest weights in both the Nasdaq-100 and the S&P 500, so moves in its shares tend to ripple through Index Funds and the portfolios of many retail investors.

Supplier Checks and TSMC's October 15 Results Will Show Whether iPhone 18 Pro Demand Is Softening

Stocks trade Monday, October 12, Columbus Day, while the Bond Market is closed. The September Consumer Price Index is due Wednesday, October 14, with retail sales on Thursday giving a read on consumer spending. Bank Earnings begin Tuesday, and the Fed meets October 27–28. Investors will watch for any response from Apple or its suppliers on the reported order cuts, and for further supply-chain checks on iPhone 18 Pro demand. Taiwan Semiconductor (NYSE:TSM), Apple's main chip manufacturer, reports on Thursday, October 15.