Apple Cancels Plans to Boost iPhone XR Production

Apple Cancels Plans to Boost iPhone XR Production

Apple Cancels Plans to Boost iPhone XR Production

Apple told its main phone assemblers, Foxconn and Pegatron, to stop plans for additional iPhone XR production lines, a report said Monday.

On Friday, Apple's stock declined 6.6%, a day after it provided guidance for the holiday December quarter that fell short of Street expectations.

Apple announced it has taken $62.9bn (£48.2bn) in revenue for Q4 2018, an increase of 20 per cent ($52.5m) year-on-year.

Sadly, if a new report published by the Nikkei Asian Review this morning is accurate, the iPhone XR's sales performance hasn't been that great, which has prompted Apple to instruct its suppliers and contract manufacturing partners to reduce production.

"The utilisation for the XR production is not reaching its maximum capacity now", the report added. According to a research note from analyst Jun Zhang (originally brought to light by Philip Elmer-DeWitt's Apple 3.0), there may have been some quality control issues involving the iPhone XR's printed circuit boards that led to a reduction in production output.

A bunch of Apple's other Taiwanese suppliers fell sharply, including camera lens-maker Largan Precision Co, which was down more than 7 percent, and Flexium Interconnect, which fell 6 percent.

On Apple's post-earnings call last week, Chief Executive Tim Cook said he had very little sales data for the iPhone XR, but the other two models had got off to a "really great start".

Which iPhone is the best smartphone Apple has ever produced in your opinion? The strong quarter, however, was driven by the older models, iPhone 8 and iPhone X.

Apple on Monday did not respond to a Reuters request for comment. The company had released the higher priced iPhone XS and XS Max more than a month earlier. Foxconn and Pegatron each said they would not comment on specific customers or products. It's possible, for instance, that overall iPhone demand is down and Apple is reducing its production costs.

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

A report by the Nikkei financial daily fueled concerns that the iPhone XR was facing weak demand just days after it went on sale.

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