Apple cancelled the additional production of iPhone XR due to poor demand

Posted November 07, 2018

Apple is instead apparently requesting more iPhone 8 and iPhone 8 Pluses, to the tune of 5 million additional units, for a total of 25 million older iPhone units requested for the quarter.

Apple reportedly told three different suppliers to reduce or completely eliminate production lines for the device.

The iPhone XR, meanwhile, is having its demand outlook cut by around 20% to 25%, according to the Nikkei source.

Apple iPhone XS review - how does the experience compare to Android? The company is a key assembler for iPhone XR, and it has also secured orders for iPhone XS Max, added the sources. While "XR production is not reaching its maximum capacity now" sounds bad on the face of it, for the end user who wants to order an iPhone today and get one tomorrow.

With regards to the growing uncertainty caused by the US-China trade disputes, Tung said Pegatron, being a technology company with global deployments, does not see it necessary to relocate its production capacity completely out of China, noting that a 3% capacity relocation might be sufficient. "Combined with the continued strong momentum we're seeing among its iPhone 8 and 8 Plus, these sales have contributed to a 5.0 percentage point increase in OS share for Apple in the U.S. - the biggest gain seen worldwide this quarter. iPhone 8 was the top selling model in the U.S. over the quarter, with a 9.4% share of the handset market, and with iPhone XR launching outside this period we'd expect Apple share to tick up further towards the end of the year". The strong quarter, however, was driven by the older models, iPhone 8 and iPhone X. But Wistron now expects to "receive no orders for the iPhone XR this holiday season". Surprisingly the company asked assemblers for more production of iPhone 8 and iPhone 8 Plus units.

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. And then there is the "affordable" iPhone XR that starts at Rs 76,900 for base model, and goes all the way up to Rs 91,900.