Apple Reportedly Halts Additional iPhone XR Production

Ruben Fields
November 6, 2018

So Apple is canceling plans to boost production over the holidays.

According to a report in the Nikkei, however, things may not have been quite so enthusiastic in stores.

The tech giant has requested that its manufacturing partners Foxconn and Pegatron keep its iPhone XR production lines at 45 and not expand them to the 60 production lines it had initially planned, the Nikkei is reporting, citing sources who claim to have knowledge of its plans.

Last year, Apple had to face one of the most controversial year endings when the infamous performance throttling feature was discovered to bog down older iPhones.

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Cutting corners: iPhone manufacturers are not able to make full use of their production capabilities and are closing down unneeded assembly lines. According to Nikkei, this means that Foxconn will be producing almost 100,000 units less every day based on the new forecasts available. Reportedly, Apple has instructed three separate suppliers to either reduce or completely eliminate production expectations for the new device.

Taiwanese assembler Pegatron Corp fell almost 4 per cent and rival Hon Hai Precision Industry Co Ltd (Foxconn) fell 2.5 per cent. Apple is widely considered the biggest customer for Foxconn.

Tied to this is the unexpected news that demand of the previous-generation iPhone 8, which Apple still sells, has jumped.

The drop in Apple's shares since last Thursday has cut its market cap by more than $100 billion. These phones are about 20 percent less expensive than the iPhone XR. Apple has ordered 5 million more iPhone 8 and 8 Plus units this quarter, bringing the total to 25 million. "The moves to add orders for year-old iPhone models while suspending extra production for the latest product illustrates Apple's lack of innovation and inability to energize consumers with such a pricing strategy". This news arrives shortly after Apple has made a decision to stop sharing units sales on individual product lines.

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