Apple cancels iPhone Xr production boost

Apple cancels iPhone Xr production boost

A report by Nikkei claims that Apple has told iPhone assemblers Foxconn and Pegatron to abandon plans to increase iPhone XR production capacity.

Apple's iPhone XR was the third model the company unveiled in September.

A smaller third assembler, Wistron, originally tapped to be on standby for rush demands, will also reportedly not receive rush orders this season. That sent the smartphone manufacturer's suppliers down across Asia, while Apple's stock looks set for further declines - falling 0.5% in premarket trading on Tuesday morning. The decrease translates to 100,000 fewer units daily from Taiwanese supplier Foxconn, and likely, similar cuts at another Taiwanese supplier, Pegatron.

"Suppliers of iPhone 8 and iPhone 8 Plus are getting a combined order of around 5 million more units".

"The utilization for the XR production is not reaching its maximum capacity now".

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The report, in Nikkei, states that demand for the iPhone XR has been "disappointing".

Apple's iPhone XR, which boasts the iPhone X's edge-to-edge display, albeit using older LCD pixels instead of the X's high-resolution OLED screen, was widely expected to fuel a massive wave of upgrades from users of the iPhone 6S or earlier models.

This information may help explain why Apple provided a dim forecast for iPhone sales in the current quarter. 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. This news arrives shortly after Apple has made a decision to stop sharing units sales on individual product lines. It's also possible that more people are opting for other iPhones, leaving Apple to modify its original plan.

Apple did not respond to Reuters' request for comment, while Foxconn and Pegatron each said they would not comment on specific customers or products.

Another point worth making is that in the past, Apple has found it hard to keep up with iPhone demand, resulting in shortages and long wait times.

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