Apple has told iPhone assemblers to halt plans for additional production lines dedicated to the iPhone XR, claimed a new report on Monday.

According to sources cited by the Nikkei Asian Review, Apple has informed Taiwanese smartphone manufacturers Foxconn and Pegatron of the cancelation, which the report said signaled "disappointing demand" for Apple's lower cost flagship model, which launched late last month.

iphonexrcolors1

"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 familiar with the situation said.

That means Foxconn, the Taiwanese company traded as Hon Hai Precision Industry, would produce around 100,000 fewer units daily to reflect the new demand outlook -- down 20% to 25% from the original optimistic outlook, this person said.

As for Pegatron, the iPhone assembler is said to be "suspending plans to ramp up production and awaiting further instructions from Apple," according to Nikkei's supply chain sources.

Apple has reportedly also asked smaller iPhone assembler Wistron to stand by for rush orders, but Nikkei's sources said the company will receive no orders for the iPhone XR this holiday season.

Nikkei's reporting on iPhone supplies has been off the mark in recent years, with claims of Apple slashing iPhone production orders on weak demand being at odds with later sales figures.

The latest report also clashes with recent remarks made by noted Apple analyst Ming-Chi Kuo, who said that iPhone XR pre-order demand in the first three days of the device's availability was "better than that" of the iPhone 8 and iPhone 8 Plus during the same period last year.

Kuo said that although pre-order demand immediately after launch has been lower for the iPhone XR versus the flagship iPhone XS models, overall iPhone XR shipment momentum is "more stable" because it will drive more customers to upgrade than the iPhone 8 series over time.

On the flip side, some analysts expressed concerns that the iPhone XR's strong availability following launch implied weak sales of the $749 handset.

In addition, Apple's $89 to $93 billion revenue forecast for the first fiscal quarter of 2019 was cautious in its earnings call, but Apple blamed this on foreign exchange costs, issues with supply/demand balance, and weakness in emerging markets.

Apple CFO Maestri also explained that Apple had "some uncertainty" around supply/demand balance for the "unprecedented number" of new products the company had launched over the last six weeks.

The launch timing of the new iPhones was also said to be a factor, with the iPhone XR coming later than the XS and the XS Max. This had an effect on Apple's Q4 revenue and is also expected to impact Q1.

Tag: Nikkei
Related Forum: iPhone

Top Rated Comments

Gooberton Avatar
72 months ago
I’m not shocked at all. Apples greed is out of control.
Score: 65 Votes (Like | Disagree)
Skeith Avatar
72 months ago
Hope this is a good indicator to Apple. Your phones are too expensive.
Just chill a bit with the prices will ya?
Score: 59 Votes (Like | Disagree)
Tiger8 Avatar
72 months ago
With Apple no longer reporting iPhone sales numbers, it’s a free-for-all when it comes to Apple rumours now.
The very fact that they stopped reporting numbers should tell us that, they are no longer that good.

No publicly traded company hides news that would spike their shares
Score: 46 Votes (Like | Disagree)
rmoliv Avatar
72 months ago
For the price of a XR people can buy OLED, dual or triple camera phones from other brands such as Samsung and Huawei. The only reason I'd buy it if I couldn't afford the Xs Max would be access to iOS.
Score: 31 Votes (Like | Disagree)
levitynyc Avatar
72 months ago
I took a look at one of those in Best Buy yesterday as I’m looking to replace my 7Plus.

Meh. Maybe it was half the price I’d consider it.

Just felt and looked cheap.

For someone like my dad, he wouldn’t notice the resolution drop, but he would completely balk at the price.

That should be a $499 phone.
Score: 27 Votes (Like | Disagree)
Abazigal Avatar
72 months ago
With Apple no longer reporting iPhone sales numbers, it’s a free-for-all when it comes to Apple rumours now.
Score: 19 Votes (Like | Disagree)

Popular Stories

iOS 17

iOS 17.5 Bug May Also Resurface Deleted Photos on Wiped, Sold Devices [Updated]

Friday May 17, 2024 12:24 pm PDT by
A bug in iOS 17.5 is apparently causing photos that have been deleted to reappear, and the issue seems to impact even iPhones and iPads that have been erased and sold off to other people. A Reddit user wiped an iPad following Apple's guidelines in September of 2023 before selling it off to a friend. That friend updated the iPad to iPadOS 17.5 this week, and began seeing the Reddit user's old ...
iphone se 4 modified flag edges

When to Expect the Next iPhone SE to Launch

Friday May 17, 2024 2:03 pm PDT by
It has been over two years since Apple released the third-generation iPhone SE, and rumors continue to surface about a new model. The latest word comes from The Information, which today reported that Apple plans to release a new iPhone SE with a design similar to the standard iPhone 14 in the spring of 2025. If this rumor is accurate, the iPhone SE would finally gain Face ID and a notch...
oled m4 ipad pro grainy display reports

OLED iPad Pro Users Report 'Grainy' Displays, But It May Not Be a Defect

Friday May 17, 2024 5:57 am PDT by
Some new M4 iPad Pro models are exhibiting a visible static grain pattern across the OLED display, according to several user reports on Reddit (1, 2, 3) and the MacRumors Forums. Image credit: MacRumors user bk215 Users who see the grain generally report that it is most noticeable in dark environments with the display set at a low to medium brightness while viewing content with gray or muted...
iOS 17

Troubling iOS 17.5 Bug Reportedly Resurfacing Old Deleted Photos

Wednesday May 15, 2024 5:29 am PDT by
There are concerning reports on Reddit that Apple's latest iOS 17.5 update has introduced a bug that causes old photos that were deleted – in some cases years ago – to reappear in users' photo libraries. After updating their iPhone, one user said they were shocked to find old NSFW photos that they deleted in 2021 suddenly showing up in photos marked as recently uploaded to iCloud. Other...
Delta Hands On Feature

iPhone Emulators on the App Store: Game Boy, N64, PS1, PSP, and More

Thursday May 16, 2024 12:45 pm PDT by
In April, Apple updated its guidelines to allow retro game emulators on the App Store, and several popular emulators have already been released. The emulators released so far allow iPhone users to play games released for older consoles from Nintendo, Sony, SEGA, Atari, and others. A list of some popular emulators available on the App Store so far follows. Released Delta Delta is...
iphone 15 pro max vs iphone 16 pro max

iPhone 16 Pro Max Looks This Much Bigger Beside iPhone 15 Pro Max

Thursday May 16, 2024 4:51 am PDT by
This year's upcoming iPhone 16 Pro Max is expected to get a boost in overall size from 6.7-inches to 6.9-inches, and a new image gives us a good idea of how the current iPhone 15 Pro Max compares to what could be Apple's largest ever iPhone. The image above, posted on X by ZONEofTECH, shows a dummy model representing the ‌iPhone 16 Pro‌ Max alongside an actual iPhone 15 Pro Max. Dummy...