Published: Tue, November 06, 2018
Industry | By Terrell Bush

Apple cancels output boost for iPhone XR

Apple cancels output boost for iPhone XR

Sporting a almost edge-to-edge display at a price point that is drastically lower than Apple's iPhone XS models, many analysts have been predicting that the iPhone XR will be a runaway hit this holiday shopping season.

Apple didn't respond to Nikkei's request for comment. The iPhone XR has received glowing reviews from users and the press, but the phone is still one of Apple's pricier models-which may be affecting demand.

Pegatron has already solved the issue of labor shortage at its plants in China and has made prompt shipments allowing its major brand client to start delievering its new smartphone models in late October, according to company chairman TH Tung.

The iPhone XR - priced starting at $749 - is meant to replace the iPhone 8 introduced a year ago.

Cutting corners: iPhone manufacturers are not able to make full use of their production capabilities and are closing down unneeded assembly lines. It's possible, for instance, that overall iPhone demand is down and Apple is reducing its production costs.

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"For the Foxconn side, it first prepared almost 60 assembly lines for Apple's XR model, but recently uses only around 45 production lines as its top customer said it does not need to manufacture that many by now", the Nikkei quoted a source as saying.

Per usual, you might want to take Nikkei's report with a grain of salt, especially in light of analyst Ming-Chi Kuo's recent investor note detailing how iPhone XR sales in the holiday quarter may reach as high as 38 million units.

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.

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.

This information may help explain why Apple provided a dim forecast for iPhone sales in the current quarter.

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