Published: Thu, November 08, 2018
Tech | By Amelia Peters

Apple cancels production boost for iPhone XR because demand not meeting expectations

Apple cancels production boost for iPhone XR because demand not meeting expectations

Recent reports claim Apple has halted supplier production for its "affordable" 2018 iPhone, citing lower-than-expected demand.

Both Foxconn and Pegatron are used by Apple to assemble its smartphones, alongside Wistron. Apple is also said to have revised planned units for older iPhone models for this quarter from 20 million to 25 million.

At the lowest level of the day, Apple shares have registered a loss of 10.8 per cent in two days. Of course, with Apple no longer keen on releasing quarterly iPhone sales, we really won't be able to know how iPhone sales fared relative to previous quarters. 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.

Piecing the details of the report together, it all appears to imply that more would-be iPhone buyers are opting to save the additional money by purchasing the older iPhone 8 or iPhone 8 Plus instead of the newer iPhone XR. However, Apple did indicate that it's a feature that will be part of all future iPhones, which has brought last year's gleaming iPhone models to suffer from the same wrath.

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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Foxconn assembly lines initially started with 60 for the iPhone XR, recently the number came down to 45 production lines.

"History has shown all kinds of statements made about Apple supply chain and the endless predictions of slowing of iPhone and other Apple product sales have been wrong", said Feinseth, who rates Apple's stock a "strong buy".

In short, the sky isn't falling and iPhone sales aren't about to drop drastically.

"We caution investors not to lose sight of the massive metamorphosis on the horizon at Apple being led by the services business", Ives wrote in a research report published Monday.

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