Poor Demand for iPhone XR Forces Apple to Halt a Planned Production Boost

Slower-than-expected demand has reportedly led Apple to direct its top phone assemblers, Foxconn and Pegatron, to halt a planned production boost for iPhone XR, a relatively cost-effective model that hit the shelves late last month. Foxconn, a Taiwan-based company, would produce around 100,000 fewer units daily to reflect the new demand outlook, down 20-25% from the original optimistic outlook, Japanese financial paper Nikkei reported on Monday citing anonymous sources.

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“For the Foxconn side, it first prepared nearly 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,” a source told Nikkei, as reported by IANS.

Fellow Taiwanese manufacturer Pegatron is also suspending plans to ramp up production, the report said. The iPhone XR debuted alongside the iPhone XS and top-of-the-line XS Max.

While the demand for iPhone XR appears to have not met Apple’s expectations, the Cupertino, California-headquartered tech giant is requesting more of the older iPhone 8 and iPhone 8 Plus models, which are up to 20% cheaper than the XR’s starting price of $749.

“Suppliers of iPhone 8 and iPhone 8 Plus are getting a combined order of around five million more units,” one source told Nikkei.

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4 Comments on "Poor Demand for iPhone XR Forces Apple to Halt a Planned Production Boost"

 

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saket kewate
November 7, 2018 7:21 pm 7:21 PM

Does this news can also be read as.

Tim cook want manufacturing of new XR, XS series from india. ( make in india) thus halted boost production, thus cancelled production in china.

Secondly this news is not been confimed from Manufacuter (foxcon/wontron) it was given by

Jason
November 6, 2018 7:45 pm 7:45 PM

Poor Demand? I see people are so happy to buy this phone in Amazon, people are so crazy to buy this phone at this price. Better they can go for iphone 8 or X or XS

Sandeep
November 6, 2018 8:50 pm 8:50 PM

But still Indian prices are exorbitant.another reason globally wud be that unless one needs dual SIM functionality which is largely Asian phenomenon the reason to go for an xr over the 8 is negligible unless and until somebody wants to be on the cutting edge of releases.in India had this phone been prices a bit lower say at least in the s9 or note 8 range it wud have performed bit better as iOS is better than android.added to that the loss of 3d touch and fingerprint and notch on the xr cud be an added disadvantage

Jason
November 7, 2018 7:46 am 7:46 AM

Agree, pricing has been way off and if only it was 1080p with 3.5 mm jack it would have been sold like hot cakes

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