Apple faces iPhone 18 Pro order cuts and mounting margin pressure

what happened

TradingView reports that Apple Inc. (NASDAQ:AAPL) is facing a mixed outlook as softer demand and higher AI-related memory costs lead to cuts in October orders for iPhone 18 Pro models and put pressure on margins. Third-quarter revenue nevertheless climbed 16% to $109.4 billion, while Apple is scheduled to hold a New York event on October 13 focused on smart-home products.

Preorders for the foldable iPhone Duo are due to begin on October 16, with shipments starting October 23 at $1,999. Initial production will be limited, and Apple is targeting 8–10 million units for the year. TradingView identifies the Duo preorder figures as the next important data point for assessing demand and the early performance of the split-launch strategy.

Apple reported a third-quarter gross margin of 50.1%. Tariff refunds contributed about 2 percentage points, implying an adjusted margin of roughly 48.1%. Morgan Stanley cautioned that higher memory costs and a smaller-than-expected Pro price increase could weigh on margins, although its revenue outlook remains upbeat and earnings forecasts were reduced.

A judge ordered Apple to pay $184 million in post-judgment interest on a $634 million Masimo patent verdict involving Apple Watch sensors, bringing the total to $818 million; interest will accrue until payment. Apple also faces an approximately 180-basis-point year-over-year headwind from tougher October comparisons, while new EU rules affect just over 10% of trailing 12-month App Store revenue. Analysts say Apple’s AI could generate more than 15% of Services revenue and add about $75 per share to valuation. Apple is also expected to adopt OLED in next-generation MacBook Pro models. TradingView notes that this is an AI-generated summary and may contain inaccuracies.

why it matters

For AAPL, near-term attention is likely to center on iPhone Duo preorder demand, memory-cost pressure, margin trends and the effect of EU App Store rules. TradingView also points to AI and OLED adoption as possible longer-term revenue drivers.

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