Apple reportedly cancels production boost for iPhone XR
Apple reportedly cancels production boost for iPhone XR
The iPhone XR is reportedly not selling as well as Apple and analysts predicted
05 November, 2018, 18:12
The iPhone XR has received glowing reviews from users and the press, but the phone is still one of Apple's pricier models-which may be affecting demand. And as a result, Apple's suppliers have canceled plans to ramp up production of the device.
The tech giant has requested that its manufacturing partners Foxconn and Pegatron keep its iPhone XR production lines at 45 and not expand them to the 60 production lines it had initially planned, the Nikkei is reporting, citing sources who claim to have knowledge of its plans.
Cutting corners: iPhone manufacturers are not able to make full use of their production capabilities and are closing down unneeded assembly lines. According to Nikkei, this means that Foxconn will be producing almost 100,000 units less every day based on the new forecasts available.
It's worse news for Wistron, which had been warned to ready itself for a potential rush of holiday orders. But Wistron now expects to "receive no orders for the iPhone XR this holiday season".
"We believe Apple's slightly soft guidance reflects our recent view that Apple will reduce iPhone production", he wrote on Friday.
Nikkei said Apple is asking for more supplies of the older iPhone 8 and iPhone 8 Plus, which are up to 20% less expensive than the XR. Originally Apple had ordered 20 million of the last generation model but has since raised the order to 25 million. And at a starting price of $749, it's the most affordable new iPhone on store shelves.
This, combined with the rapid rise of China-based handset makers like Huawei, may also help explain why Apple will no longer provide iPhone unit sales figures: The firm is no longer the number two player in the smartphone market and may fall to number four or five in the coming year by unit sales.
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