Apple cancels production boost for iPhone XR

The iPhone XR may not be selling as well as Apple hoped.                  Ian Knighton  CNET

The iPhone XR may not be selling as well as Apple hoped. Ian Knighton CNET

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.

Pegatron has already solved the issue of labor shortage at its plants in China and has made prompt shipments allowing its major brand client to start delievering its new smartphone models in late October, according to company chairman TH Tung.

Apple has informed its assemblers Foxconn and Pegatron to halt the production line of the smartphone.

"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", the Nikkei quoted one source as saying. Apple is widely considered the biggest customer for Foxconn. What this means in practice is that Foxconn will make around 100,000 fewer units each day to reflect the new demand outlook. The strong quarter, however, was driven by the older models, iPhone 8 and iPhone X. And at a starting price of $749, it's the most affordable new iPhone on store shelves.

Tung also insisted that Pegatron is capable of raising its workforce in China several times in a period of 2-3 weeks to accommodate major product launch by clients.

A smaller third assembler, Wistron, originally tapped to be on standby for rush demands, will also reportedly not receive rush orders this season.

Suppliers of the 8 and 8 Plus have received a combined order of around 5 million more units.

Last Friday, Apple shares had fallen sharply, dragging the USA 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.

A bunch of Apple's other Taiwanese suppliers fell sharply, including camera lens-maker Largan Precision Co Ltd, which was down more than 7 per cent, and Flexium Interconnect Inc, which fell 6 per cent.

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