IPhone XR Sales are Much Softer Than Expected

Yolanda Curtis
November 6, 2018

While Apple had great expectations for the iPhone XR, it's now ordering more iPhone 8 and 8 Plus models from its partners.

Taiwanese assembler Pegatron Corp fell almost 4 per cent and rival Hon Hai Precision Industry Co Ltd (Foxconn) fell 2.5 per cent. Apple is widely considered the biggest customer for Foxconn.

Throwing some cold water on that idea is a new report from Nikkei which claims that Apple is reducing iPhone XR production due to lower than anticipated demand.


Apple's lower-priced XR model was expected to be popular over the holiday season, luring owners of older iPhones to upgrade. However, it is now using only around 45 lines and does not require any additional production capacity.

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

The Nikkei, citing supply chain sources, said Apple had also asked smaller iPhone assembler Wistron Corp to stand by for rush orders, but that the company will receive no planned orders for the iPhone XR this season. According to the report, demand is still strong for those models and Apple not expects to produce 25 million iPhone 8 and iPhone 8 Plus units during the fourth quarter. "The moves to add orders for year-old iPhone models while suspending extra production for the latest product illustrates Apple's lack of innovation and inability to energize consumers with such a pricing strategy". During that call, Apple also - for the first time ever - neglected to give iPhone sales numbers for the quarter.


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.

The analyst predicts the company's Services business, which includes its App Store, Apple Music, and Apple Pay offerings, will grow 20% annually and rise more than $50 billion in sales by fiscal 2020.


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