Home » IT

Apple slashes iPhone XR production orders as demand fails to meet expectations

08 November, 2018, 04:11 | Author: Lydia Fleming
  • Open this

According to Nikkei, this means that Foxconn will be producing almost 100,000 units less every day based on the new forecasts available.

Apple slid 3.3 per cent on Monday, adding to the stock's near 7 per cent fall on Friday, after the Nikkei reported the company has told two smartphone assemblers to halt plans for additional production lines dedicated to the lower-cost iPhone XR, according to Reuters. At Foxconn, 5 million more iPhone 8 and iPhone 8 Plus units per quarter are coming off the production line than originally planned. So it looks like customers are considering those the true lower-priced alternatives to the XS and XS Max, and not the XR.

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.

Indeed, it was widely hailed as the unexpected hit of Apple's 2018 iPhone event.

Apple shares fell almost 4 per cent after the report, which fueled concerns that the iPhone XR, the cheapest of three iPhones Apple unveiled in September, was facing weak demand just days after it hit shelves.


Over half of the figure ($37.1bn) was driven by iPhone sales with over 46 million handsets sold.

Apple's other manufacturer, Pegatron, faces a similar situation. Last year, we saw a number of stories from trusted publications claiming that Apple's iPhone X had hit early production problems or that it wasn't selling particularly well. And if you liked smaller devices, the iPhone XR is actually the second-worst Apple phone to replace your old phone with - the iPhone XS is narrower, at 2.8 inches versus 2.98.

"We caution investors not to lose sight of the massive metamorphosis on the horizon at Apple being led by the services business", Ives wrote in a research report published Monday.

Apple may have made a boatload of money in the July - September 2018 quarter, managing to considerably boost its share of U.S. smartphone sales before the iPhone XR was even released, but it's not all rosy in the Cupertino camp.

Recommended:



Popular

Donald Trump’s Post-Midterm Behavior Is Out of Control, Even for Him
Acosta again tried to badger Trump, and the president lost his cool, shouting " that's enough! " at the reporter. Acosta is the guy who comes to the mic during a Q&A to make a rambling statement instead of ask a question.

What Early Voting Can (And Can't) Tell Us
Almost 900,000 Oklahomans voted in the June primaries, which was higher than the turnout for the 2014 general election. The Division monitors elections to help determine compliance with these voting rights statutes.

Amazon’s Second Headquarters Hunt May Be Near A Selection
NY is one of the finalists in Amazon's search to build another headquarters, according to a person familiar with the talks. Localities have been competing to offer tax breaks, real estate plots, and other benefits to lure Amazon ( amzn ).

China says will surely help Pakistan in financial crisis
They also agreed to task the CPEC's Joint Cooperation Committee (JCC) with formulating ideas to explore new areas of cooperation. Both sides expressed satisfaction at the progress of CPEC which is a flagship project of Belt and Road initiative.

Prince Turki Al-Faisal denounces demonization of Saudi Arabia
Saudi officials have offered varying explanations for how and why Khashoggi was killed on October 2. Germany and Switzerland have vowed to halt arms sales to Saudi Arabia until the case is clarified.

United States armed forces member killed in Afghanistan insider attack
The 39-year-old Taylor was on a one-year leave of absence from his job as mayor of North Ogden for his deployment to Afghanistan . USA military officials say another military member whose name has not been made public was wounded during the attack.

Trump says China's Xi wants a deal to end escalating trade war
"I think we'll make a deal with China , and I think it will be a very fair deal for everybody, but it will be a good deal for the United States".

Indonesian plane crash investigators make crucial discovery
The Lion Air aircraft which crashed into the Java Sea reportedly had technical problems prior to takeoff the day before. The data recorder was reportedly found in almost 100 feet of water about 1,600 feet from where the jet lost contact.

Zero trailer unleashes deluge of memes featuring SRK, Katrina, Anushka
The film is releasing on 21st December 2018 and it will occupy the week of Christmas like SRK's previous film Dilwale and Don 2. When Shah Rukh Khan was asked which cricketer he would like to dismiss on Zero , the legendary actor came up with a ideal reply.

'Make history here in Georgia': Obama urges voters to elect Stacey Abrams
Kemp is trying to extend the Republican domination in Georgia , which hasn't elected a Democrat as governor since 1998. The actress is set to hit the campaign trail for Abrams this week and gave a heartfelt speech at Thursday's event.