Apple Reportedly Halts Additional iPhone XR Production
07 November, 2018, 18:04 | Author: Leah Owens
Since it's the cheapest of the new iPhone trio, you'd expect the iPhone XR to be the best selling of the bunch, but apparently that's not how things work in Apple land.
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 shares fell almost 4 per cent on Monday after the report by the Nikkei financial daily, which fuelled concerns that the iPhone XR - the cheapest of three iPhones unveiled in September - was facing weak demand just days after it went on sale. The phone starts at $749. Apple has ordered 5 million more iPhone 8 and 8 Plus units this quarter, bringing the total to 25 million.
While early iPhone XR reviews have been largely positive, the verdict is unfortunately still out concerning how well Apple's brand-new LRD-equipped iPhone is (or is not) resonating with consumers. Its sources say that Apple has told its manufacturing partners, Foxconn and Pegatron, that it won't be needing the extra production lines it originally expected to tap.
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But, if Nikkei and its supply-chain sources are accurate on any level, it would appear that Apple's 2018 iPhone pricing strategy may be backfiring. Most - sensible - companies do this, because they want enough capacity at the product launch to accommodate demand, and then ramping this back after that initial demand. "The utilization for the XR production is not reaching its maximum capacity now", another source said. That sent the smartphone manufacturer's suppliers down across Asia, while Apple's stock looks set for further declines - falling 0.5% in premarket trading on Tuesday morning.
With an average monthly salary of $3,428, Americans can pay off the base iPhone XR in less than one work week.
Note: Make sure the Apple Watch is on the Charging pad during the entire installation procedure and also make sure it is near the companion iPhone connected to Wi-Fi.
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