Apple reportedly cancels production boost for the iPhone XR

Report: Apple cancels iPhone XR production boost

Sources reportedly claim Foxconn set-up 60 assembly lines for the iPhone XR, however, only used 45 lines.

"The utilisation for the XR production is not reaching its maximum capacity now", the report added. It's possible iPhone XR demand isn't meeting Apple's expectations, but exactly the reason that's happening is hard to determine.

A bunch of Apple's other Taiwanese suppliers fell sharply, including camera lens-maker Largan Precision Co, which was down more than 7 percent, and Flexium Interconnect, which fell 6 percent.

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

Apple did not immediately respond to a Fortune request for comment on the report.

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Piecing the details of the report together, it all appears to imply that more would-be iPhone buyers are opting to save the additional money by purchasing the older iPhone 8 or iPhone 8 Plus instead of the newer iPhone XR.

Apple may have made a boatload of money in the July - September 2018 quarter, managing to considerably boost its share of U.S. smartphone sales before the iPhone XR was even released, but it's not all rosy in the Cupertino camp. Last year, we saw a number of stories from trusted publications claiming that Apple's iPhone X had hit early production problems or that it wasn't selling particularly well. It's possible, for instance, that overall iPhone demand is down and Apple is reducing its production costs.

This information may help explain why Apple provided a dim forecast for iPhone sales in the current quarter.

Some lauded the mid-range handset for its iPhone XS-caliber performance, which is strategically available for a fraction of the price. The new product lines Apple has fielded are significantly different than the old, and it's entirely possible that customers are still sorting out which devices they actually want to buy. According to the report, demand is still strong for those models and Apple not expects to produce 25 million iPhone 8 and iPhone 8 Plus units during the fourth quarter.

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