Apple reportedly cancels iPhone XR production boost
Apple reportedly cancels iPhone XR production boost
The iPhone XR is reportedly not selling as well as Apple and analysts predicted
06 November, 2018, 11:08
Sporting a almost edge-to-edge display at a price point that is drastically lower than Apple's iPhone XS models, many analysts have been predicting that the iPhone XR will be a runaway hit this holiday shopping season.
"We caution investors not to lose sight of the massive metamorphosis on the horizon at Apple being led by the services business", Ives wrote in a research report published Monday. Apple had introduced the iPhone XR, made of aluminum, along with two other models, the XS and XS Max, in September this year. So Apple is canceling plans to boost production over the holidays. It's possible iPhone XR demand isn't meeting Apple's expectations, but exactly the reason that's happening is hard to determine.
Foxcomm originally planned to use 60 production lines for the handset but will only use 45 now.
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". It's possible, for instance, that overall iPhone demand is down and Apple is reducing its production costs.
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Word has been sent from Apple to manufacturing partners Foxconn and Pegatron that additional capacity will not be required for producing the iPhone XR.
It's too early to tell if the iPhone XR will have a similar fate as the iPhone 5C. And at a starting price of $749, it's the most affordable new iPhone on store shelves.
"Suppliers of iPhone 8 and iPhone 8 Plus are getting a combined order of around 5 million more units", one source told Nikkei. "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". The company forecasted fiscal-first-quarter sales of $89 billion to $93 billion versus the average analyst projection of $93.02 billion.
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