Apple cancels iPhone XR production boost

Apple cancels iPhone XR production boost

Apple cancels iPhone XR production boost

The $749 model is Apple's budget iPhone, and at a few hundred dollars cheaper than the flagship XS and XS Max was meant to stir consumer interest among more cost-conscious buyers.

According to a report by Nikkei Asian Review, the most affordable iPhone of 2018 is definitely not doing as well, sales-wise, as Apple anticipated it would. And as a result, Apple's suppliers have canceled plans to ramp up production of the device.

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

Wistron, one of Apple's lesser known iPhone assemblers, was reportedly asked to remain on standby for production of the iPhone XR earlier in the year, but will not be receiving any orders to produce more iPhones.




Yet Nikkei is also reporting that while Apple may be choosing not to initiate extra reserved production lines for the iPhone XR, the company is boosting its production of the iPhone 8 and iPhone 8 Plus this quarter by an extra 5 million units.

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

Meanwhile, Pegatron, which is another key partner of the Cupertino-based tech giant, has had to "suspend plans to ramp up production", now "awaiting further instructions", according to supply chain sources that are typically right about these things. But Wistron now expects to "receive no orders for the iPhone XR this holiday season". The strong quarter, however, was driven by the older models, iPhone 8 and iPhone X. "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.

Last Friday, Apple shares had fallen sharply, dragging the USA tech major's market value below $1 trillion after the company forecast softer-than-expected sales for the holiday quarter and fueled nerves over iPhone sales by saying it would no longer release the figures.

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