Key Takeaways
- Apple (AAPL) has reportedly cut iPhone 18 Pro and Pro Max component orders by 15% to 20% for October, citing weaker-than-expected consumer demand following recent price hikes.
- Sweden’s economy showed resilience in August, with the monthly GDP indicator rising 1.1%, significantly beating analyst estimates of 0.5%.
- Norway’s Producer Price Index (PPI) surged 12.4% month-on-month in September, driven by volatile energy costs, while annual PPI inflation hit 48.8%.
- Japan’s machine tool orders remained robust in September, growing 60.4% year-on-year, marking the 14th consecutive month of annual expansion despite a slight cooling from August.
Apple Faces Demand Headwinds for Premium Models
Apple (AAPL) is scaling back production for its flagship iPhone 18 Pro and Pro Max models. According to reports from Nikkei, the tech giant instructed suppliers to reduce component orders by as much as 20% for the month of October. Analysts suggest that rising retail prices and shortened delivery wait times in major markets like the U.S. and U.K. are clear signals of softening consumer appetite for the high-end devices.
This development comes as Apple shifts its strategy toward a more complex lineup, including the rumored iPhone Duo foldable. While initial pre-orders for the Pro Max initially pushed delivery dates into October, the rapid stabilization of supply chains and cooling demand have led firms like Jefferies to maintain an "Underperform" rating on the stock.
Scandinavian Economic Indicators Beat Expectations
Sweden reported a strong recovery for August, with the GDP indicator rising 1.1% month-on-month, bouncing back from a revised 0.7% contraction in July. The growth was broad-based, fueled by a 5.8% year-on-year jump in industrial production and a 5.1% increase in industrial orders. These figures suggest the Swedish private sector is navigating international geopolitical tensions better than previously forecasted.
In contrast, Norway’s latest data highlighted persistent inflationary pressures in the industrial sector. The PPI including oil climbed to 48.8% year-on-year in September, up from 30.1% in August. However, consumer-level inflation (CPI) offered a slight reprieve, coming in at 3.4% year-on-year, which was lower than the 3.6% estimated by economists.
Japan’s Manufacturing Sector Maintains Momentum
Japan’s industrial sector continues to show strength, as machine tool orders reached JPY 223.2 billion in September. While the 60.4% year-on-year growth was a slight deceleration from August’s 64.7%, it represents a fresh record for the month. Demand remains particularly high for AI-related infrastructure and robotics, with significant order volumes originating from North America and China.
The sustained growth in machine tool orders is often viewed as a leading indicator for global capital expenditure. With Japan's order backlog now surpassing JPY 1 trillion, manufacturing visibility remains high despite broader concerns regarding global interest rate cycles and inflationary trends.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.