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

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.

Nikkei writes that the lack of innovation is hurting Apple.

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.

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

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According to a report Monday by Japan's Nikkei, Apple "signaled disappointing demand" for the iPhone XR by informing manufacturing partners Foxconn and Pegatron to halt plans for additional production lines of the smartphone targeted at price-conscious consumers.

Foxconn is now using around 45 production lines for the iPhone XR model, compared with 60 it first prepared, meaning it would produce around 100,000 fewer units daily, down 20 to 25 percent from its original outlook, said Nikkei, citing one of the people.

Apple shares dipped as much as 4.5 per cent to hit an intraday low of $198.17 in early deals, from the previous close of $207.48.

It may seem odd to see an iPhone XS review on Android Authority, but it's hard to deny the iPhone's influence on the directions Android's gone over the years.

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A smaller third assembler, Wistron, originally tapped to be on standby for rush demands, will also reportedly not receive rush orders this season. This is not the first time, five years ago, when Apple launched the iPhone 5C with plastic back, it had cut production orders a month after its launch, which fuelled speculation of weak demand for the model.

Now usually, we would simply have to wait until January when Apple releases its earnings report to get some insight into overall iPhone sales and the veracity of Nikkei's report.

This information may help explain why Apple provided a dim forecast for iPhone sales in the current quarter.

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