Morgan Stanley: iPhone 18 component orders cut by 15%, end-device production has yet to follow suit

According to TechFlow, a Morgan Stanley research report dated October 8, 2026, notes that just four weeks after the launch of the iPhone 18 Pro and Pro Max, component orders have been cut by at least 15%. Largan Precision stated that customers have reduced orders, bringing delivery lead times down to 1.5 to 4 weeks. Morgan Stanley maintains its iPhone shipment forecast at 57 million units for the September quarter and 76 million units for the December quarter. Morgan Stanley assesses that the component order cuts have not yet translated into end-product manufacturing reductions, with neither Foxconn nor TSMC cutting capacity. If the current demand trend persists, the risk of production downgrades from 2027 onward will increase. The firm maintains an Overweight rating on Apple with a $355 target price. Changes in orders for Foxconn and TSMC will be the next key focus.