Apple cancels the increase in production of iPhone XR because demand does not meet expectations



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Instead of the iPhone XR, Apple is asking its manufacturers to produce more iPhone models, more than a year old, iPhone 8 and iPhone 8 Plus

Apple cancels the increase in production for the iPhone XR

STRONG POINTS

  • Foxconn used only 45 of the 60 production lines for the iPhone XR
  • Another iPhone XR manufacturer, Wistron, has suspended plans to increase production

Apple launched three new iPhones in September with the cheapest of three smartphones, the iPhone XR, with a starting price of $ 749 (Rs 76,900 in India). A low price should mean that the iPhone XR should be one of the company's best-selling iPhone models this year. However, a new report suggests that the new iPhone launched is not doing as well as expected.

According to a report by Nikkei Asian Review, California's Cupertino, California, reportedly asked its leading smartphone builders, Foxconn and Pegatron, to shut down production lines dedicated to the low-cost iPhone. Sources told the publication that Foxconn had originally prepared nearly 60 production lines for iPhone XR production. However, the Taiwanese manufacturer has so far only used 45 production lines.

Apple's other maker, Pegatron, is facing a similar situation. The manufacturer has stopped its plans to boost production and is now awaiting new instructions from the technology giant.

"The use for the production of XR does not reach its maximum capacity now," sources told the publication.

In addition, the report states that the company had asked Wistron to remain in reserve during the sales season. However, sources of supply suggest that the company will not receive any orders during the end of the year holidays.

Interestingly, while the company is facing slow demand for its newly launched iPhone XR, the company is asking its manufacturers a larger number of units for its one year iPhones, the iPhone. 8 and the iPhone 8 Plus. The iPhone 8 and iPhone 8 Plus providers receive a combined order of 5 million additional units, bringing the total to 25 million units.

Apple has also predicted a lukewarm forecast of its iPhone sales during the upcoming holiday season. The company also announced that it will no longer share the number of iPhones sold in quarterly reports released by the public.

READ ALSO: The iPhone is now too expensive for India, the sale is expected to fall for the first time in four years

The rush of producing old-fashioned iPhone models, coupled with the suspension of its low-cost XR iPhone, shows that the company is no longer able to attract users with its pricing strategy. In addition, markets in countries like the United States are saturated and users no longer perform the upgrade of their phones as often as before. This has led experts to think that the company's business figure is expected to fall flat in the last quarter of 2018.

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