Apple Cancels Plans to Boost iPhone XR Production

The iPhone XR may not be selling as well as Apple hoped.                  Ian Knighton  CNET

The iPhone XR may not be selling as well as Apple hoped. Ian Knighton CNET

There are three quotes by anonymous sources in the report that gets to the heart of the matter.

The report goes on to cite that Pegatron - Apple's second-largest iPhone assembly partner, also headquartered in Taiwan - faces a similar situation, where it's been instructed to suspend plans for ramping-up iPhone XR production pending further instructions from Apple, the same supply-chain source noted.

"The utilization for the XR production is not reaching its maximum capacity now". Apple is instead apparently requesting more iPhone 8 and iPhone 8 Pluses, to the tune of 5 million additional units, for a total of 25 million older iPhone units requested for the quarter.

The Nikkei's report comes days after Cupertino, California-based Apple warned that sales for the crucial holiday quarter would likely miss Wall Street expectations.

That said, there are a few things to bear in mind. Taking cognisance of the issue, the company halted the software roll-out. And this isn't an Apple thing. At Rs 76,900, the iPhone XR is still on the expensive side, and maybe some cashback, EMI and buyback offers could help Apple sell significant number of units. History is littered with "Apple cuts production" headlines that meant little.

Apple closed just above $200 amid a wider tech sell-off which has seen other FAANG stocks fall in recent weeks.

"Last year, Apple gave rush orders for the iPhone 7 series following the launches of the iPhone 8 series and premium iPhone X", the Japanese financial newspaper said.

That's a good thing.

At the same time, however, Apple made major changes to its entire iPhone product line this year in a way it really hasn't before.

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".

The report, in Nikkei, states that demand for the iPhone XR has been "disappointing".

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