Published: Tue, November 06, 2018
Electronics | By Kelly Massey

Apple cancels output boost for iPhone XR

Apple cancels output boost for iPhone XR

Instead, insiders in the supply chain claim, there'll be no need for its iPhone XR manufacturing capacity to meet Apple's holiday season forecasts.

The company's decision to not expand production lines doesn't necessarily suggest problems.

The iPhone XR - priced starting at $749 - is meant to replace the iPhone 8 introduced a year ago.

The report says Apple informed its primary suppliers - Foxconn and Pegatron - to halt plans for additional production lines for the iPhone XR.

Foxcomm originally planned to use 60 production lines for the handset but will only use 45 now. According to Nikkei, this means that Foxconn will be producing almost 100,000 units less every day based on the new forecasts available.

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Pegatron apparently faces a similar situation, suspending plans to ramp up production of the iPhone XR and simply awaiting further instructions from Apple at this time.

"This performance management feature is specific to iPhone and does not apply to any other Apple products". Sporting a almost edge-to-edge display at a price point that is drastically lower than Apple's iPhone XS models, many analysts have been predicting that the iPhone XR will be a runaway hit this holiday shopping season.

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

Suppliers of the 8 and 8 Plus have received a combined order of around 5 million more units.

The company's stock drop - pushing Apple's market cap below $1 trillion - comes after shares closed down 6.6% last Friday, to $207.48 per share, as investors reacted to the September quarter earnings results with lower iPhone unit sales and weaker-than-expected December quarter revenue guidance. Apple's array of color options were also expected to give consumers more of the choice they wanted. This news arrives shortly after Apple has chose to stop sharing units sales on individual product lines.

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