Apple cancelled the additional production of iPhone XR due to poor demand

Report: Apple cancels iPhone XR production boost

Report: Apple cancels iPhone XR production boost

This news comes from Asia Nikkei Review, which also claims that Apple had asked Wistron to stand-by to fill orders as well, but has since indicated it will not be using any additional capacity for iPhone XR production. Its sources say that Apple has told its manufacturing partners, Foxconn and Pegatron, that it won't be needing the extra production lines it originally expected to tap.

Some lauded the mid-range handset for its iPhone XS-caliber performance, which is strategically available for a fraction of the price.

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. And ultimately, after Apple's continued considerable success, I'm not willing to bet that the company got its customer read wrong this soon after the iPhone's triple launch. The company is a key assembler for iPhone XR, and it has also secured orders for iPhone XS Max, added the sources.

Apple shares fell almost 4 per cent after the report, which fueled concerns that the iPhone XR, the cheapest of three iPhones Apple unveiled in September, was facing weak demand just days after it hit shelves.

Broadly speaking, the original report regarding a drop in iPhone production illustrates why Apple understandably wants to keep iPhone sales close to its chest.

And are you surprised by the low demand for the iPhone XR?

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

Specifically, Rosenblatt Securities Managing Director and top research analyst Jun Zhang foresees an iPhone X production ramp-up of between 1 and 2 million units for the holidays. Apple previously planned 20 million units for the older iPhone models this quarter, but raised the figure to 25 million units, the individual said. The decrease translates to 100,000 fewer units daily from Taiwanese supplier Foxconn, and likely, similar cuts at another Taiwanese supplier, Pegatron. With more customers choosing less expensive and older iPhones, Apple will have trouble raising the average selling price (ASP) of the device lineup, in keeping with its new strategy, which I call "Apple Jacks".

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