Apple cuts production of the iPhone XR after demand for the "budget" $ 749 phone is tight

Apple cuts production of the iPhone XR after demand for the "budget" $ 749 phone is tight

Apple has told its major smartphone assemblers to discontinue plans for additional production lines for the iPhone XR, claims a new report.

The order from Foxconn and Pegatron may indicate a disappointing demand for the lowest-priced mobile phone in Apple's new iPhone range, the Nikkei Asian Review said citing nearby sources.

It comes when the iPhone XR came on the market just a few weeks ago.

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Apple has announced to its major smartphone assemblers, Foxconn and Pegatron, that it plans to discontinue production of additional production lines for the iPhone XR, the lowest-priced device in its iPhone range

Apple has announced to its major smartphone assemblers, Foxconn and Pegatron, that it plans to discontinue production of additional production lines for the iPhone XR, the lowest-priced device in its iPhone range

"The Foxconn site initially produced nearly 60 assembly lines for Apple's XR model, but recently only about 45 production lines were used because the top customer said he did not have to produce that many," said an anonymous Source the Nikkei.

This means that around 100,000 less units would have to be produced daily to meet the reduced demand – by 20 to 25 percent over the original forecasts.

The production plans for the Apple manufacturer Pegatron were also reduced.

Wistron, another iPhone assembler, was told that he will not receive orders for the iPhone XR, Nikkei reported.

Instead, Apple has asked to ramp up production of the iPhone 8 and iPhone 8 Plus models, which also oversee Foxconn and Pegatron.

"Suppliers of iPhone 8 and iPhone 8 Plus will receive a combined order from around 5 million more units," said a source opposite the Nikkei.

Foxconn was asked to produce about 60 production lines for the XR model, but stopped at 45 production lines after Apple had told him that he would not produce any more, the Nikkei said

Foxconn was asked to produce about 60 production lines for the XR model, but stopped at 45 production lines after Apple had told him that he would not produce any more, the Nikkei said

Apple had planned to produce 20 million units of older iPhone models, but increased this number to 25 million units.

At its iPhone launch in September, Apple introduced the lower-priced iPhone XR made of aluminum as well as two other models, the XS and the XS Max.

The company hoped that the iPhone XR owners of older iPhones could convince them to switch to the newer model, which costs 749 US dollars (749 US dollars).

However, the 2017 iPhone 8 and iPhone 8 Plus are still cheaper at $ 600 and $ 700, respectively.

Apple said last week that it did not sell as many iPhones as the analysts expected and warned that sales for the crucial holiday quarter would likely miss the projections.

iPhone XR vs. iPhone XS vs XS max

Screen Size:

Display Type:

Processor:

Water resistance:

Battery life:

Fast loading:

Wireless Fee:

3D Touch Display:

Dual cameras:

Optical zoom:

FaceID:

Mass:

Software:

Price:

To dye:

iPhone XR

6.1 inches

LCD

A12 Bionic

IP67

Up to 15 hours

Yes

Yes

No

No

No

Yes

194 g (6.84 oz)

iOS 12

$ 749 (£ 749)

Yellow, white, coral, black, blue and product red

iPhone XS

5.8 inches

OLED

A12 Bionic

IP68

Up to 12 hours

Yes

Yes

Yes

Dual 12MP lens

Yes. 2x

Yes

177g (6.24 oz)

iOS 12

$ 999 (£ 999)

Gold, space gray, silver

iPhone XS max

6.5 inches

OLED

A12 Bionic

IP68

Up to 13 hours

Yes

Yes

Yes

Dual 12MP lens

Yes. 2x

Yes

208g (7.34 oz)

iOS 12

$ 1099 (£ 1099)

Gold, space gray, silver

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