Published: Tue, November 06, 2018
Technology | By Lionel Gonzales

Apple cancels iPhone XR production boost

Apple cancels iPhone XR production boost

The report noted that Apple's directive translates to about 100,000 fewer iPhone XRs being made each day. This has led the company to cancel a so called "production boost" for the model.

Apple did not immediately respond to a Fortune request for comment on the report.

Apple has told its smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to the iPhone XR which launched last month, the Nikkei reported on Monday.

Foxcomm originally planned to use 60 production lines for the handset but will only use 45 now.

It's too early to tell if the iPhone XR will have a similar fate as the iPhone 5C. They are "suspending plans to ramp up production and awaiting further instructions from Apple". It's possible, for instance, that overall iPhone demand is down and Apple is reducing its production costs.

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Finally, Wistron, which had been waiting and hoping to join the iPhone XR assembly party to handle so-called "rush orders", no longer expects to get any business from Apple "this holiday season".

Tied to this is the unexpected news that demand of the previous-generation iPhone 8, which Apple still sells, has jumped.

The latest iPhone may be one of the hottest flagships this year, but it seems like Apple has miscalculated demand for the product if a report from Nikkei is accurate.

The company's stock drop - pushing Apple's market cap below $1 trillion - comes after shares closed down 6.6% last Friday, to $207.48 per share, as investors reacted to the September quarter earnings results with lower iPhone unit sales and weaker-than-expected December quarter revenue guidance. The company forecasted fiscal-first-quarter sales of $89 billion to $93 billion versus the average analyst projection of $93.02 billion.

Despite Apple hinting at a lesser performance deterioration compared to the older models, the feature will eventually tune down the CPU' performance to prevent the device from abruptly switching off.

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