Apple cancels iPhone XR production boost due to low demand

In September, Apple launched three new iPhones, the premium iPhone XS and iPhone XS Max that start at Rs 99,900 and go all the way up to Rs 144,900. It has been reported that the company has halted the additional production of the smartphone. This has led the company to cancel a so called "production boost" for the model.

"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 Japanese financial paper.

Apple has informed several of its suppliers that expectations should be tempered for orders of the Apple iPhone XR. As a result, Foxconn will build 100,000 fewer units every single day than would have happened under Apple's original order. The math makes sense, as they are up to 20% cheaper than the iPhone XR's starting price of $749.

The iPhone XR also managed to get glowing reviews, both from the critics and users, but it is still one of the pricier models, which may be affecting the smartphone demand.


Apple also stoked worries about iPhone sales last week when it said that beginning this quarter, it will no longer break down unit sales for iPhones, iPads and Macs. And if you liked smaller devices, the iPhone XR is actually the second-worst Apple phone to replace your old phone with - the iPhone XS is narrower, at 2.8 inches versus 2.98.

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.

A bunch of Apple's other Taiwanese suppliers fell sharply, including camera lens-maker Largan Precision Co Ltd, which was down more than 7 per cent, and Flexium Interconnect Inc, which fell 6 per cent. "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".


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