Published: Tue, November 06, 2018
IT | By Darin Griffith

Apple cancels production boost for iPhone XR

Apple cancels production boost for iPhone XR

Thanks in part to the release of exciting new models like the iPhone XS and XS Max during the third quarter, Apple is still growing its market share in the United States according to newly released data from Kantar Worldpanel.

Apple's market capitalisation (M-Cap) or market value slipped below the $950-billion mark as shares of the iPhone maker fell, news agency Reuters reported. And as a result, Apple's suppliers have canceled plans to ramp up production of the device.

According to Nikkei, Apple has told smartphone assemblers Pegatron and Foxconn to halt plans for additional production lines that they were to dedicate to the iPhone XR. And ultimately, after Apple's continued considerable success, I'm not willing to bet that the company got its customer read wrong this soon after the iPhone's triple launch.

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Wistron, one of Apple's lesser known iPhone assemblers, was reportedly asked to remain on standby for production of the iPhone XR earlier in the year, but will not be receiving any orders to produce more iPhones.

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. Apple's willingness to raise its prices across the board is a testament to just how strong a product the iPhone X was. That's down 20% to 25% compared to Apple's most optimistic prognosis. And at a starting price of $749, it's the most affordable new iPhone on store shelves.

Interestingly, the iPhone 8 and iPhone 8 Plus have had orders increase by more than 5 million units.

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Five years ago, Apple cut production orders for its plastic-backed iPhone 5C a month after its launch, fueling speculation of weak demand for the model.

The report follows Apple's decision last week to stop providing unit-sales figures in its quarterly earnings, making it even more hard going forward to determine individual unit success.

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