IPhone XR isn't selling as well as Apple anticipated, production reportedly cut

Report: Apple cancels iPhone XR production boost

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

Apple's lower-priced XR model was expected to be popular over the holiday season, luring owners of older iPhones to upgrade.

Taiwanese assembler Pegatron Corp fell almost 4 per cent and rival Hon Hai Precision Industry Co Ltd (Foxconn) fell 2.5 per cent. Apple is widely considered the biggest customer for Foxconn. So Apple is canceling plans to boost production over the holidays. And then there is the "affordable" iPhone XR that starts at Rs 76,900 for base model, and goes all the way up to Rs 91,900.

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Cutting corners: iPhone manufacturers are not able to make full use of their production capabilities and are closing down unneeded assembly lines.

Tung's remarks are tantamount to a denial of rumors that claimed Apple had lowered the proportion of iPhone XR orders allocated to Pegatron to 35%, and switched more orders to Foxconn Electronics, as Pegatron's production had been affected by shortages of labor and some key components. As per the source, this means Foxconn would be producing 100,000 few units of the iPhone XR daily than initially estimated - a decline of around 20-25 percent. It's possible, for instance, that overall iPhone demand is down and Apple is reducing its production costs.

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In contrast, the iPhone XR's $750 starting price made it seem a relative bargain. "The moves to add orders for year-old iPhone models while suspending extra production for the latest product illustrates Apple's lack of innovation and inability to energize consumers with such a pricing strategy".

"Suppliers of iPhone 8 and iPhone 8 Plus are getting a combined order of around 5 million more units", one source said. During that call, Apple also - for the first time ever - neglected to give iPhone sales numbers for the quarter. Weakened demand for smartphones globally might not hurt Apple's revenue too much, but suppliers could feel the strain.

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Apple said it would stop providing unit sales for iPhones, iPads, and Macs in fiscal 2019.

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