Apple cancels production boost for iPhone Xr

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Apple cancels production boost for iPhone Xr

Nikkei writes that the lack of innovation is hurting Apple. And as a result, Apple's suppliers have canceled plans to ramp up production of the device. 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.

Foxcomm originally planned to use 60 production lines for the handset but will only use 45 now.

Apple has told its smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to the iPhone XR which launched last month, the Nikkei reported on Monday. What this means in practice is that Foxconn will make around 100,000 fewer units each day to reflect the new demand outlook.

Meanwhile, Pegatron, which is another key partner of the Cupertino-based tech giant, has had to "suspend plans to ramp up production", now "awaiting further instructions", according to supply chain sources that are typically right about these things. It's possible, for instance, that overall iPhone demand is down and Apple is reducing its production costs.

Apple had initially informed Foxconn to set up almost 60 assembly lines for the iPhone XR.

Tied to this is the unexpected news that demand of the previous-generation iPhone 8, which Apple still sells, has jumped.

In contrast, the iPhone XR's $750 starting price made it seem a relative bargain.

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.

Apple also stoked worries about iPhone sales last week when it said that beginning this quarter, it will no longer break down unit sales for iPhones, iPads and Macs.

Apple said it would stop providing unit sales for iPhones, iPads, and Macs in fiscal 2019.

The report follows Apple's decision last week to stop providing unit-sales figures in its quarterly earnings, making it even more hard going forward to determine individual unit success. During that call, Apple also - for the first time ever - neglected to give iPhone sales numbers for the quarter.

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