IPhone XR isn't selling as well as Apple anticipated, production reportedly cut

Report: Apple cancels iPhone XR production boost

Report: Apple cancels iPhone XR production boost

Apple's lower-priced XR model was expected to be popular over the holiday season, luring owners of older iPhones to upgrade. It has been reported that the company has halted the additional production of the smartphone. And as a result, Apple's suppliers have canceled plans to ramp up production of the device.

Foxconn, the world's largest contract electronics manufacturer and the leading iPhone XR assembler, is apparently using "only around 45 production lines" of a prepared total of 60 to manufacture its share of Apple-requested units.

"For the Foxconn side, it first prepared almost 60 assembly lines for Apple's XR model, but recently uses only around 45 production lines as its top customer said it does not need to manufacture that many by now", a source told the paper. And will instead supply Apple will far fewer iPhone XR handsets than originally expected.

"Combined with the continued strong momentum we're seeing among its iPhone 8 and 8 Plus, these sales have contributed to a 5.0 percentage point increase in OS share for Apple in the U.S. - the biggest gain seen worldwide this quarter. iPhone 8 was the top selling model in the USA over the quarter, with a 9.4% share of the handset market, and with iPhone XR launching outside this period we'd expect Apple share to tick up further towards the end of the year".

Apple had asked Wistron, one of its smaller manufacturing partners, to "stand by" in case iPhone XR demand exploded. However, the update also brought the Performance Management for the battery to iPhone 8, iPhone 8 Plus and the iPhone X. The feature is enabled by default and will start throttling performance as soon as it detects a drop in consistency from the power reserve. It's also possible that more people are opting for other iPhones, leaving Apple to modify its original plan.

As a reminder, iPhone XR sales began in the fourth quarter (last month), so we'll see a look at how they're affecting market share sometime in early 2019.

"Suppliers of iPhone 8 and iPhone 8 Plus are getting a combined order of around 5 million more units", Nikkei report quotes a source as saying. The publication notes that Apple had previously planned 20 million units for the older iPhone models this quarter, but raised the figure to 25 million units. "Last year, Apple gave rush orders for the iPhone 7 series following the launches of the iPhone 8 series and premium iPhone X", the Japanese financial newspaper said.

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