The demand for the iPhone XR would require Apple to reduce its plans for expansion of production

Apple CEO Tim Cook in a Chinese factory Foxconn.

The iPhone XR, the latest version for Apple from the end of October, has only been available for a short time. While the manufacture of major products could lead to an expansion of production to cope with increased demand, similar projects to do the same for the new iPhone would have been abandoned.

A source familiar with the situation told Nikkei Asian Review "On Foxconn's side, the company has first prepared nearly 60 assembly lines for Apple's XR model, but has only recently used 45 production lines His main client said he: "There is no need to make as much at the present time."

This reduction would mean that Foxconn would produce about 100,000 fewer units a day, which is 20% to 25% less than the "initial optimistic outlook".

Pegatron, the other main assembler of Apple's iPhone XR, has also suspended plans to increase production and expects further information from Apple. "The use of XR production is not reaching its maximum capacity now," the source said.

The third iPhone assembly partner, Wistron, had also been asked to replace orders if necessary, but the supply chain indicated that no orders would be forwarded to the company during the next week. holidays.

A month before the release of the iPhone XR, a report claimed that Apple planned to increase its production after the initial launch period and until December, the model being to represent 50% of the production.

Analysts have estimated initial sales at around 9 million units the first weekend, surpassing the launch of the iPhone 8. Jun Zhang, of Rosenblatt Securities, however informed investors December for all his new models.

While orders for the iPhone XR are falling, Apple apparently is asking for more handsets for the iPhone 8 and the iPhone 8 Plus to be produced.

"The iPhone 8 and iPhone 8 Plus vendors are getting a combined order of about 5 million additional units," a source said. According to the report, which had already been set at 20 million units, total orders placed at Foxconn and Pegatron for the two older models amounted to 25 million units.

It is now said that Apple is reviewing the application for iPhones on a weekly basis, the source added, in order to quickly adjust the orders according to the market.

Changes in post-launch production levels are not an unexpected phenomenon, as manufacturers generally try to produce enough to cover demand without producing too much or too little units. As the source of such stories comes from anonymous sources in the supply chain, and sometimes with different accounts according to publications, there is no guarantee that the claims of reduction are really true.

More specifically, the Nikkei Asian Review has a mixed record on the details of Apple's manufacturing plans. It is also unclear how "reductions" now compare to previous seasonal adjustments.