IPhone XR sales reportedly kill production boost plan

IPhone XR sales reportedly kill production boost plan

As a result, Apple has reportedly cancelled the production boost that it was likely to give after the smartphone hit the shelves.

Last year, Apple had to face one of the most controversial year endings when the infamous performance throttling feature was discovered to bog down older iPhones.

Apple has told its top smartphone assemblers-Foxconn and Pegatron-"to halt plans for additional production lines dedicated to the new iPhone XR".

As for Wistron, Apple has asked the smaller iPhone assembler to stand by for rush orders, but supply chain sources claim the company will in fact receive none for the XR this holiday season.

Cutting corners: iPhone manufacturers are not able to make full use of their production capabilities and are closing down unneeded assembly lines. That suggested a 20%-25% reduced forecast in unit sales, per the Nikkei report, which cited anonymous sources. It's possible, for instance, that overall iPhone demand is down and Apple is reducing its production costs.

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"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", the Nikkei quoted one source as saying.

It's too early to tell if the iPhone XR will have a similar fate as the iPhone 5C.

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.

In contrast, the iPhone XR's $750 starting price made it seem a relative bargain. But Apple last week, if you recall, announced that they would no longer disclose iPhone sales as part of their quarterly reports. This news arrives shortly after Apple has chose to stop sharing units sales on individual product lines. Apple has ordered 5 million more iPhone 8 and 8 Plus units this quarter, bringing the total to 25 million.

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