Apple cancels iPhone XR production boost due to low demand
Apple cancels iPhone XR production boost due to low demand
The iPhone XR may not be selling as well as Apple hoped. Ian Knighton CNET
06 November, 2018, 17:38
This news comes from Asia Nikkei Review, which also claims that Apple had asked Wistron to stand-by to fill orders as well, but has since indicated it will not be using any additional capacity for iPhone XR production. "The utilization for the XR production is not reaching its maximum capacity now", another source said.
"Suppliers of iPhone 8 and iPhone8 Plus are getting a combined order of around 5 million more units", one source said.
Before we dive into this, I want to recommend caution where Apple and iPhones are concerned.
Thanks in part to the release of exciting new models like the iPhone XS and XS Max during the third quarter, Apple is still growing its market share in the U.S. according to newly released data from Kantar Worldpanel. While the iPhone XS and iPhone XS Max are undoubtedly powerful and, with their OLED screens and dual cameras, capable, they're also expensive. Given the disparity between what we saw being said about the iPhone X a year ago and its 12-month performance, some caution is clearly warranted. Apple previously told Wistron to stand by for rush orders, but now the supplier will not receive any orders for the holiday season. The company killed the iPhone SE without so much as an announcement. Foxconn and Pegatron declined to comment on specific customers or products.
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. This has led the company to cancel a so called "production boost" for the model.
Indeed, it was widely hailed as the unexpected hit of Apple's 2018 iPhone event.
Apple shares fell almost 4 percent after a report signaled that its new, lower-priced iPhone XR might not be selling as well as expected.
Separately, Apple's stock was downgraded for the second time since its earnings report, this time by Rosenblatt Securities, which said it has lowered its expectations for iPhone production and shipments, CNBC reported here on Monday.
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