Apple Reportedly Halts Additional iPhone XR Production

Sheri Evans
November 6, 2018

This has led the company to cancel a so called "production boost" for the model.

Apple has told its smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to its new iPhone XR, the Nikkei financial daily reported on Monday.

Wistron, one of Apple's lesser known iPhone assemblers, was reportedly asked to remain on standby for production of the iPhone XR earlier in the year, but will not be receiving any orders to produce more iPhones.

All in all, if Apple really is opting to not enable extra production lines for the iPhone XR it means around 100,000 fewer iPhone XR models will be produced every day during the next few months. Apple is widely considered the biggest customer for Foxconn. At Foxconn, only 45 production lines of the planned 60 are now being used. The device looks like the more-expensive iPhone XS and iPhone XS Max, but comes with a cheaper LCD screen, instead of the OLED display you'd find in the higher-priced models.

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Apple shares sank as much as 4.5% Monday following a report that the tech giant has scaled back production orders for its new entry-level iPhone XR model. The math makes sense, as they are up to 20% cheaper than the iPhone XR's starting price of $749.

Tung also insisted that Pegatron is capable of raising its workforce in China several times in a period of 2-3 weeks to accommodate major product launch by clients. But Wistron now expects to "receive no orders for the iPhone XR this holiday season". That's down 20% to 25% compared to Apple's most optimistic prognosis.

This, combined with the rapid rise of China-based handset makers like Huawei, may also help explain why Apple will no longer provide iPhone unit sales figures: The firm is no longer the number two player in the smartphone market and may fall to number four or five in the coming year by unit sales.

The report follows Apple's decision last week to stop providing unit-sales figures in its quarterly earnings, making it even more hard going forward to determine individual unit success.

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