WS #15599
Apple has reduced production orders for the iPhone 18 Pro by approximately 20%, citing softer-than-anticipated consumer demand. This cut affects component suppliers and signals a potential slowdown in the smartphone upgrade cycle, contrasting with the broader tech rally. The move highlights a divergence between AI infrastructure spending and consumer hardware adoption, pressuring margins for Apple and its supply chain partners. Lumentum, a key Nvidia supplier, reports its AI server optical parts are sold out through 2029, confirming robust capital expenditure in AI infrastructure. However, the scrapped IPO of Nvidia-backed Firmus Grid and BIS warnings about circular AI investment flows suggest that while hardware demand is strong, the financialization of the AI narrative is facing reality checks. This duality supports a bullish view on specific hardware enablers while tempering enthusiasm for broader AI-themed equities.
Apple iPhone 18 Pro Demand Weakness
Apple has reduced production orders for the iPhone 18 Pro by approximately 20%, citing softer-than-anticipated consumer demand. This cut affects component suppliers and signals a potential slowdown in the smartphone upgrade cycle, contrasting with the broader tech rally. The move highlights a divergence between AI infrastructure spending and consumer hardware adoption, pressuring margins for Apple and its supply chain partners.
Lumentum, a key Nvidia supplier, reports its AI server optical parts are sold out through 2029, confirming robust capital expenditure in AI infrastructure. However, the scrapped IPO of Nvidia-backed Firmus Grid and BIS warnings about circular AI investment flows suggest that while hardware demand is strong, the financialization of the AI narrative is facing reality checks. This duality supports a bullish view on specific hardware enablers while tempering enthusiasm for broader AI-themed equities.