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Apple cancels production boost for iPhone XR

Apple cancels production boost for iPhone XR

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.

There are reports that Apple has pulled back plans for a major iPhone XR capacity boost, with Foxconn and Pegatron planning to deploy fewer manufacturing lines for Apple's cheapest premium phone.

The Nikkei report comes days after Apple said sales for the usually busy holiday period would likely miss analyst expectations as sales in emerging markets including India were weak.

Apple slid 3.3 per cent on Monday, adding to the stock's near 7 per cent fall on Friday, after the Nikkei reported the company has told two smartphone assemblers to halt plans for additional production lines dedicated to the lower-cost iPhone XR, according to Reuters.

Apple reportedly asked smaller Taiwanese assembler Wistron to prepare for rush orders, but it won't be getting XR orders this holiday season.

Thanks in part to the release of exciting new models like the iPhone XS and XS Max during the third quarter, Apple is still growing its market share in the U.S. according to newly released data from Kantar Worldpanel.

Interestingly, the iPhone 8 and iPhone 8 Plus have had orders increase by more than 5 million units.

Apple on Monday did not respond to Reuters' request for comment.

Last year, Apple had to face one of the most controversial year endings when the infamous performance throttling feature was discovered to bog down older iPhones.

At Rs 76,900, the iPhone XR is still on the expensive side, and maybe some cashback, EMI and buyback offers could help Apple sell significant number of units. The publication notes that Apple had previously planned 20 million units for the older iPhone models this quarter, but raised the figure to 25 million units.

Both Foxconn and Pegatron are used by Apple to assemble its smartphones, alongside Wistron.

Healthy early sales of iPhone XS and iPhone XS Max models in the States are good news for Apple.

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