Japanese news service Nikkei reported Monday that Apple has asked its Chinese suppliers including Foxconn to halt plans for additional production lines of the newly released iPhone XR, whose price starts at $749 instead of $999 and up for the other new iPhones.
In Foxconn's case, it prepared 60 production lines for the iPhone XR, but so far has only used 45.
Separately, Apple's stock was downgraded for the second time since its earnings report, this time by Rosenblatt Securities, which said it has lowered its expectations for iPhone production and shipments, CNBC reported here on Monday.
The report, in Nikkei, states that demand for the iPhone XR has been "disappointing". At Foxconn, only 45 production lines of the planned 60 are now being used. According to Nikkei, this means that Foxconn will be producing almost 100,000 units less every day based on the new forecasts available.
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It's too early to tell if the iPhone XR will have a similar fate as the iPhone 5C.
Pegatron the Taiwanese manufacturer company has also stopped the production plans of the iPhone XR. "Suppliers of iPhone 8 and iPhone 8 Plus are getting a combined order of around 5 million more units", sources told Nikkei Asian Review.
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.
This information may help explain why Apple provided a dim forecast for iPhone sales in the current quarter.
Apple announced it has taken $62.9bn (£48.2bn) in revenue for Q4 2018, an increase of 20 per cent ($52.5m) year-on-year. "Last year, Apple gave rush orders for the iPhone 7 series following the launches of the iPhone 8 series and premium iPhone X", the Japanese financial newspaper said.