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06 November 2018, 05:40 | Cameron Gross
The iPhone XR may not be selling as well as Apple hoped. Ian Knighton CNET
Apple's iPhone XR was the third model the company unveiled in September. And as a result, Apple's suppliers have canceled plans to ramp up production of the device.
Monday's fall came after Apple told its smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to the iPhone XR which hit shelves in October, Reutersreported citing a Nikkei report.
Apple has informed several of its suppliers that expectations should be tempered for orders of the Apple iPhone XR.
"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". What this means in practice is that Foxconn will make around 100,000 fewer units each day to reflect the new demand outlook.
It's too early to tell if the iPhone XR will have a similar fate as the iPhone 5C.
Tung also insisted that Pegatron is capable of raising its workforce in China several times in a period of 2-3 weeks to accommodate major product launch by clients. While the iPhone XS and iPhone XS Max are undoubtedly powerful and, with their OLED screens and dual cameras, capable, they're also expensive. Originally Apple had ordered 20 million of the last generation model but has since raised the order to 25 million. The company forecasted fiscal-first-quarter sales of $89 billion to $93 billion versus the average analyst projection of $93.02 billion.
Last year, Apple had to face one of the most controversial year endings when the infamous performance throttling feature was discovered to bog down older iPhones.
If this all sounds familiar, you're probably thinking of the Apple iPhone 5C, which Apple launched five years ago.
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