Apple cancels iPhone XR production boost due to low demand

The iPhone XR may not be selling as well as Apple hoped.                  Ian Knighton  CNET

The iPhone XR may not be selling as well as Apple hoped. Ian Knighton CNET

Slower-than-expected demand has reportedly led Apple to direct its top phone assemblers, Foxconn and Pegatron, to halt a planned production boost for iPhone XR, a relatively cost-effective model that hit the shelves late last month.

The company also warned last week that overall sales for the holiday season would likely be lower than expected.

Apple shares fell almost 4 percent after a report signaled that its new, lower-priced iPhone XR might not be selling as well as expected. "The utilization for the XR production is not reaching its maximum capacity now", another source said. The fact that it still offered Face ID, the Apple A12 Bionic processor, and a camera - albeit single, not dual - the same as that of the iPhone XS also impressed reviewers.

Apple is instead requesting more iPhone 8 and iPhone 8 Plus production to add five million additional units, making it a total of 25 million older iPhone units requested for the quarter. The XR model borrows its looks from the iPhone X and features an all-screen glass and aluminum design with a 6.1-inch Liquid Retina LCD display.

Meanwhile the iPhone 8 has profited significantly from the weakness of the iPhone XR.

Although Apple never said as much when it launched the Apple iPhone XR in September, its fairly obvious the device is meant to be more a direct competitor with the Android market.

Chinese companies indicted for stealing Micron trade secrets
On July 5, 2018, the court in Fujian notified the Micron subsidiaries that it had issued preliminary injunctions against them. A Jinhua representative declined to comment but said the company will make an announcement "when the time is right".

"The main questions are why do this now and is Cupertino hiding something (e.g., decelerating iPhone unit sales)?"

The report noted that Apple's directive translates to about 100,000 fewer iPhone XRs being made each day.

Apple on Monday did not respond to a Reuters request for comment. Foxconn and Pegatron declined to comment on specific customers or products.

The end of reporting on unit sales comes as Apple has been seeing little growth in units in its iPhone business.

Last Friday, Apple shares had fallen sharply, dragging the U.S. 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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