Apple Cancels Plans to Boost iPhone XR Production

Report: Apple cancels iPhone XR production boost

The iPhone XR is reportedly not selling as well as Apple and analysts predicted

The iPhone XR hit shelves in October, undercutting the iPhone XS by $250 despite offering much the same style and abilities.

Apple's recently released iPhone XR might not need another production round to boost supply.

Apple told its main phone assemblers, Foxconn and Pegatron, to stop plans for additional iPhone XR production lines, a report said Monday.

That'd mean the company would make around 100,000 fewer XRs, the report noted, while a source within Pegatron said "XR production is not reaching its maximum capacity now". And ultimately, after Apple's continued considerable success, I'm not willing to bet that the company got its customer read wrong this soon after the iPhone's triple launch.

Foxcomm originally planned to use 60 production lines for the handset but will only use 45 now.

Apple shares fell almost 4 per cent on Monday after the report from the Nikkei financial daily, which fuelled concerns that the iPhone XR - the cheapest of three iPhones unveiled in September - was facing weak demand just days after it hit shelves.

Other iPhone manufacturers face similar issues. Apple's willingness to raise its prices across the board is a testament to just how strong a product the iPhone X was.

The iPhone XR also managed to get glowing reviews, both from the critics and users, but it is still one of the pricier models, which may be affecting the smartphone demand.

The company's stock drop - pushing Apple's market cap below $1 trillion - comes after shares closed down 6.6% last Friday, to $207.48 per share, as investors reacted to the September quarter earnings results with lower iPhone unit sales and weaker-than-expected December quarter revenue guidance. The company forecasted fiscal-first-quarter sales of $89 billion to $93 billion versus the average analyst projection of $93.02 billion. "Last year, Apple gave rush orders for the iPhone 7 series following the launches of the iPhone 8 series and premium iPhone X", the Japanese financial newspaper said.

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