Sign up
Tech Capital

Apple reportedly tells suppliers to hold off on additional iPhone XR production

iPhone assembler Wistron has reportedly not received orders for the iPhone XR this season
iPhone XR
The iPhone XR was introduced at Apple’s launch event in September

Apple Inc (NASDAQ:AAPL) has reportedly told Taiwanese suppliers Foxconn and Pegatron to halt plans for additional production of the iPhone XR, which just reached shelves last month.

“For the Foxconn side, it first prepared nearly 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 Nikkei.

Supply chain sources also told the Nikkei that iPhone assembler Wistron had not received orders for the iPhone XR this season, but was told to stand by for rush orders.

Apple is reportedly requesting more of the older iPhone 8 and iPhone 8 Plus models instead, which are cheaper than the XR.

The iPhone XR, ranging in price from $749 to $899, was introduced at Apple’s launch event in September. In comparison, the iPhone 8 and iPhone 8 Plus cost between $599 and $849.

READ: Apple missed on iPhone sales in 4Q, but its services segment is giving analysts hope

It’s not the first time Apple has slashed production soon after a release. The company executed a similar move five years ago with its plastic-encased iPhone 5C.

The tech giant recently missed on iPhone sales in its fourth-quarter results and gave investors a heads up that holiday sales may also fall short of analyst expectations.

Neither Apple nor the suppliers have commented on the report.

Shares of Apple were down more than 2% to $203.32 in Monday morning trading.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee



Register here to be notified of future AAPL Company articles
View full AAPL profile View Profile
View All

© tech Capital 2018

Tech Capital, a subsidiary of Proactive Investors, acts as the vanguard for listed tech companies to interact with institutional and highly capitalised investors.
Headquartered in London, Tech Capital is led by a team of Europe's leading analysts and journalists, publishing daily content, covering all key movements in the Technology market.