Apple reportedly cancels iPhone XR production boost

Apple reportedly cancels iPhone XR production boost

Apple reportedly cancels iPhone XR production boost

It seems that Apple has realised that the demand of the newly launched iPhone XR is not up to the mark.

Apple Inc's Asian supplier and assembler stocks fell on Tuesday on a media report that the iPhone maker had told its smartphone assemblers to halt plans for additional production lines dedicated to its new iPhone XR.

In Foxconn's case, it prepared 60 production lines for the iPhone XR, but so far has only used 45. Apple began shipping the iPhone XR on October 26 after two weeks of pre orders. The phone starts at $749.

Suppliers of the 8 and 8 Plus have received a combined order of around 5 million more units. 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. According to Nikkei, this means that Foxconn will be producing almost 100,000 units less every day based on the new forecasts available. Indeed, Apple is said to have recently increased its production request from 20m of the handsets this quarter, to 25m. The decrease translates to 100,000 fewer units daily from Taiwanese supplier Foxconn, and likely, similar cuts at another Taiwanese supplier, Pegatron. "The utilization for the XR production is not reaching its maximum capacity now", Nikkei's source stated.

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Meanwhile, a 9to5Mac post today paints a less-rosy market share picture for Apple in Europe, where the new Kantar Worldpanel data shows iPhone market share there dropping by 1.6 points across the top five markets and only growing in Germany by half a percentage point.

Apple has taken some questionable decisions over the past years that have left us without the audio jack, Touch ID sensor in its devices or it has throttled the speed of their older iPhone models to "conserve the battery and make them last longer". It's entirely possible that the reason Apple doesn't need very many XR's is that most customers are choosing the highest-end models or defaulting to the lower-end, cheaper products.

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