Low Demand Of iPhone XR Forces Apple To Cancel Production Boost

Author - Nov 07, 2018


Low Demand Of iPhone XR Forces Apple To Cancel Production Boost

Due to poor sale figure of iPhone XR, Apple is reportedly asking its assembly partners to cut the production of its latest iPhone XR to match with the demand of the market.

Apple has reportedly asked its assembly partners Pegatron and Foxconn to cancel plans for expanding the phone production lines mostly due to the poor demand for its recent iPhone XR.

28391 44016 Cook Foxconnlaughingatmisery L L L
                                              Tim Cook visited Foxconn - a major assembly partner of Apple

The iPhone XR, among three new iPhones, were recently released on 26 October. While the production of popular products could be expanded to meet the rising demand, a similar plan for the latest iPhone XR is claimed to have been canceled.

As reported by Nikkei Asian Review, Foxconn initially prepared around 60 production lines for iPhone XR but only 45 out of 60 are now in use, as Apple said that it doesn’t need that many for now.

It is reported that this reduction would result in the production line of Foxconn producing 100,000 fewer iPhone units a day, which is claimed to be around 20 to 25% lower than the initial optimistic estimate.

Another main assembler of Apple - Pegatron also reportedly stops the firm’s plan to expand the production for now, and wait for further instruction from Apple. "The utilization for the XR production is not reaching its maximum capacity now,", stated by the information source.

The third assembly partner of Apple - Wistron was previously instructed to be prepared for a rush of iPhone orders if needed. However, the source suggested that they were told to eliminate all expectations of making any iPhone XR parts

A month before the iPhone XR’s launch, Apple was reportedly planning to expand the production line after the first release period and also into December, with the iPhone XR expected to occupy for 50 percent of the production.

Many analysts have made an estimation that the initial sale figure will be 9 million phones in the first weekend, surpassing the launch of iPhone 8. But Jun Zhang - a managing director of Rosenblatt Securities believed that pre-order figure of the iPhone XR was weak and Apple would start cut the production in both November and December for all three new iPhones.

3437534 Iphonexr Promo Logo Jpg Optimal

While orders of the iPhone XR are dropping, Apple is actually requesting its partners to produce more 8 and 8 Plus models.

"Suppliers of iPhone 8 and iPhone 8 Plus are getting a combined order of around 5 million more units," said by an unknown source. It was previously set at 20 million units and now Apple demands Pegatron and Foxconn for 5 more million units of both iPhone 8 models.

The source claimed that Apple is reviewing the iPhone’s demand every week so that they can quickly make adjustments to the orders to match the smartphone market.

Adjustments in production levels after a product’s launch are not really an unexpected event, as phone makers usually try to keep production of their units enough to cover the demand without having too few or too many units. As the information was released from unknown sources in the supply chain, no one can know for sure if the claims are indeed true.

Comments

Sort by Newest | Popular

Read more

Bill Gates Prefers Android To iOS And Here Is His Reason

ICT News- Mar 02, 2021

Bill Gates Prefers Android To iOS And Here Is His Reason

Bill Gates said while he had an iPhone, he actually used an Android handset on a daily basis

Apple Watch Icons And Their Meanings For New Users

Gadgets- Mar 03, 2021

Apple Watch Icons And Their Meanings For New Users

If you don't remember the meanings of Apple Watch Icons, this post is for you. We will explain each icon and include its image for easy finding.

Japan Has New Minister Of Loneliness To Deal With Suicide Rates

Features- Mar 02, 2021

Japan Has New Minister Of Loneliness To Deal With Suicide Rates

The role of the new Minister of Loneliness is to reduce social isolation and loneliness among the residents of the country.

6 Best Upcoming Smartphones In India With Impressive Specifications

Mobile- Mar 01, 2021

6 Best Upcoming Smartphones In India With Impressive Specifications

It's March and we will welcome more smartphones this year. These are the best upcoming smartphones in India with impressive specs for you to buy.

Moto G10 Review: A Very Cheap But Competent Phone

Mobile- Mar 03, 2021

Moto G10 Review: A Very Cheap But Competent Phone

The Moto G10 is one of the cheapest handsets available on the market that actually reach a satisfying level when it comes to performance

PM Modi Got His COVID-19 Vaccine While Not Wearing A Mask

Features- Mar 03, 2021

PM Modi Got His COVID-19 Vaccine While Not Wearing A Mask

Prime Minister Narendra Modi of India arrived at AIIMS to receive his first dose of the Made-in-India COVID-19 vaccine on March 1.