Apple puts brakes on iPhone XR

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It seems that Apple has realised that the demand of the newly launched iPhone XR is not up to the mark.

The data points to strong sales right out of the gate thanks to the September release of the newest and most premium versions of Apple's signature smartphone, which helped spur market share growth in Australia (up 3.8 percentage points), in China (up 1.3 percent points) and especially in its home market where strong iPhone 8 and 8 Plus sales are apparently helping that trend along. It's entirely possible that the reason Apple doesn't need very many XR's is that most customers are choosing the highest-end models or defaulting to the lower-end, cheaper products.

The publication says Apple has told its assemblers Foxconn and Pegatron to halt plans for additional production lines for the iPhone XR. Apple is widely considered the biggest customer for Foxconn.

"For the Foxconn side, it first prepared almost 60 assembly lines for Apple's XR model, but recently uses only around 45 production lines as its top customer said it does not need to manufacture that many by now", a source told the paper. At Foxconn, only 45 production lines of the planned 60 are now being used. As per the source, this means Foxconn would be producing 100,000 few units of the iPhone XR daily than initially estimated - a decline of around 20-25 percent.

Pegatron XR production also isn't reaching maximum capacity, and Wistron, a smaller iPhone assembler, won't receive any orders for iPhone XR this holiday season. The math makes sense, as they are up to 20% cheaper than the iPhone XR's starting price of $749. It's also possible that more people are opting for other iPhones, leaving Apple to modify its original plan.

Last Friday, Apple shares had fallen sharply, dragging the United States tech major's market value below $1 trillion after the company forecast softer-than-expected sales for the holiday quarter and fueled nerves over iPhone sales by saying it would no longer release the figures.

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