Apple has sharply cut its demand forecast for the standard iPhone 17 after a Chinese leaker, Fixed Focus Digital, posted that some production lines moved from a 15 % cut to a suspension of roughly one‑third of capacity. The leaker also noted Apple conducted a very serious internal review of how higher component costs could shrink demand.

Rising hardware costs are hitting the entire electronics sector as AI firms push data‑center buildouts. The cost of memory and storage chips has doubled in the past year, prompting Apple to lift prices on several product lines, a move the CEO, Tim Cook, called unavoidable. iPhones have avoided price hikes so far, but analysts expect the company to use the September launch of the iPhone 18 Pro to raise prices across its smartphone lineup.

Apple plans to debut a next‑generation iPhone 18 next spring, along with an iPhone 18e and an Air 2, as part of a split‑launch strategy that staggers releases to manage demand and supply.

This shift signals that Apple may need to adjust pricing or supply for its flagship line, affecting consumers and supply chains.