Apple cancelled the additional production of iPhone XR due to poor demand

Apple cancelled the additional production of iPhone XR due to poor demand

A demonstration of the newly released Apple iPhone XR is seen following the product launch event at the Steve Jobs Theater in Cupertino, California, US September 12, 2018.

There are reports that Apple has pulled back plans for a major iPhone XR capacity boost, with Foxconn and Pegatron planning to deploy fewer manufacturing lines for Apple's cheapest premium phone.

"For the Foxconn side, it first prepared almost 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". However, it is now using only around 45 lines and does not require any additional production capacity. According to Nikkei, this means that Foxconn will be producing almost 100,000 units less every day based on the new forecasts available.

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.

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Meanwhile, Pegatron, which is another key partner of the Cupertino-based tech giant, has had to "suspend plans to ramp up production", now "awaiting further instructions", according to supply chain sources that are typically right about these things.

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

In contrast, the iPhone XR's $750 starting price made it seem a relative bargain.

Interestingly, the iPhone 8 and iPhone 8 Plus have had orders increase by more than 5 million units. It's also possible that more people are opting for other iPhones, leaving Apple to modify its original plan. This is not the first time, five years ago, when Apple launched the iPhone 5C with plastic back, it had cut production orders a month after its launch, which fuelled speculation of weak demand for the model. Originally Apple had ordered 20 million of the last generation model but has since raised the order to 25 million.

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