IPhone XR isn't selling as well as Apple anticipated, production reportedly cut

Report: Apple cancels iPhone XR production boost

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. Its cheaper build materials, colorful design, and emphasis on core features are in stark contrast with the luxury-minded Apple iPhone XS and XS Max.

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

Pegatron the Taiwanese manufacturer company has also stopped the production plans of the iPhone XR.

A Nikkei report citing sources claims that Apple has asked Foxconn and Pegatron to put a halt on additional production lines for the iPhone XR. And if you liked smaller devices, the iPhone XR is actually the second-worst Apple phone to replace your old phone with - the iPhone XS is narrower, at 2.8 inches versus 2.98. At Foxconn, only 45 production lines of the planned 60 are now being used.

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. Apple planned to sell 20 million of these two during this quarter, but that number has now jumped to 25 million.

Apple also stoked worries about iPhone sales last week when it said that beginning this quarter, it will no longer break down unit sales for iPhones, iPads and Macs.

All in all, if Apple really is opting to not enable extra production lines for the iPhone XR it means around 100,000 fewer iPhone XR models will be produced every day during the next few months. And ultimately, after Apple's continued considerable success, I'm not willing to bet that the company got its customer read wrong this soon after the iPhone's triple launch.

Apple said it would stop providing unit sales for iPhones, iPads, and Macs in fiscal 2019. The company missed analysts' earnings targets in the usually busy holiday season with demand in emerging markets lower than expected.

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