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

"If the reports are accurate, we do find it somewhat disturbing that this would take place so early after the launch of the iPhone XR", Angelo Zino, an analyst at CFRA, said of the Nikkei report.

Apple had initially informed Foxconn to set up almost 60 assembly lines for the iPhone XR.

"For the Foxconn side, it first prepared almost 60 assembly lines for Apple's XR model, but recently uses only around 45 production lines as its top customer said it does not need to manufacture that many by now", a source told the paper.

Since it's the cheapest of the new iPhone trio, you'd expect the iPhone XR to be the best selling of the bunch, but apparently that's not how things work in Apple land.

Apple reportedly told three different suppliers to reduce or completely eliminate production lines for the device.

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

"This performance management feature is specific to iPhone and does not apply to any other Apple products".

"For the Foxconn side, it first prepared almost 60 assembly lines for Apple's XR model, but recently uses only around 45 production lines as its top customer said it does not need to manufacture that many by now".

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.

Suppliers of the 8 and 8 Plus have received a combined order of around 5 million more units.

Apple said it would stop providing unit sales for iPhones, iPads, and Macs in fiscal 2019. During that call, Apple also - for the first time ever - neglected to give iPhone sales numbers for the quarter.

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