Tuesday, 20 November, 2018

Apple already telling suppliers to cut down expectations for iPhone XR orders

Report: Apple cancels iPhone XR production boost The iPhone XR is reportedly not selling as well as Apple and analysts predicted
Roberta Sherman | 05 November, 2018, 23:01

It looks like the iPhone XR is not doing as well as analysts and Apple had expected.

The iPhone XR may not be selling as well as Apple hoped. And as a result, Apple's suppliers have canceled plans to ramp up production of the device. It's possible iPhone XR demand isn't meeting Apple's expectations, but exactly the reason that's happening is hard to determine. However, it is now using only around 45 lines and does not require any additional production capacity.

That'd mean the company would make around 100,000 fewer XRs, the report noted, while a source within Pegatron said "XR production is not reaching its maximum capacity now". The iPhone 8 is the last with a Home button and Touch ID, while the XR eschewed a large front button in favor of screen gestures, and employs Face ID instead.

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Its sources say that Apple has told its manufacturing partners, Foxconn and Pegatron, that it won't be needing the extra production lines it originally expected to tap.

As for Wistron, Apple has asked the smaller iPhone assembler to stand by for rush orders, but supply chain sources claim the company will in fact receive none for the XR this holiday season. For example, early this year they indicated that iPhone X had sold poorly over the holiday season. And at a starting price of $749, it's the most affordable new iPhone on store shelves.

Apple reportedly told three different suppliers to reduce or completely eliminate production lines for the device.

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Interestingly, the iPhone 8 and iPhone 8 Plus have had orders increase by more than 5 million units. Apple is also said to have revised planned units for older iPhone models for this quarter from 20 million to 25 million.

This, combined with the rapid rise of China-based handset makers like Huawei, may also help explain why Apple will no longer provide iPhone unit sales figures: The firm is no longer the number two player in the smartphone market and may fall to number four or five in the coming year by unit sales. During that call, Apple also - for the first time ever - neglected to give iPhone sales numbers for the quarter.

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