Apple had plans to boost iPhone XR production earlier, but the company has recently ordered Foxconn and Pegatron to stop the additional planned iPhone XR production lines a report said on Monday.
Foxconn and Pegatron Taiwanese Apple assemblers have been advised to shut down the additional production of iPhone XR which indicates that demand for the cheapest iPhone in 2018 hasn’t made it to Apple’s expectations. Nikkei reported citing other sources in the report.
Currently, Foxconn is operating as many as 45 production lines for Apple XR model which it stacked up to 60 assembly lines a few weeks ago but the Californian customer said we don’t need to manufacturer more models as the moment, sources told Japanese financial news.
Apple after this decision would manufacturer roughly 100,000 fewer units of Apple XR, However, sources in Pegatron company also said that XR production has not yet touched its maximum capacity indicating Apple has already manufactured fewer units than a normal batch.
Apple has also asked Wistron, a smaller Taiwanese assembler to get ready for rush orders but the company is unlikely to get XR order this holiday season—the report said.
On the other hand, Apple has ordered 5 million more iPhone 8 models from Pegatron and iPhone 8 Plus models from Foxconn, making the order to 25 million. The iPhone 8 and iPhone 8 Plus starts at $600 and $700 respectively as compared to $750 for the XR model.
Apple has also made a decision couple of days ago to sell refurbished iPhone 8 and iPhone 8 plus for $100 less which would be the best bet for pushing more sales. Apple has announced last week that the company was unable to sell as many iPhones as analysts expected and said it would no longer provide details on unit sales of iPhones, iPads, and MacBooks.
Apple iPhone sales are also set to drop for the first time in the last four years in India, a research company reported. Tim Cook said after publishing quarterly results that “it was a very long journey with speed bumps.”