Apple Halts Additional iPhone XR Production Lines Due To Decreased Demand
Apple has recently told its smartphone assemblers, Foxconn and Pegatron to halt the additional production lines for the iPhone XR. The company also asked Wistron, a smaller iPhone assembler to halt the production line for the relatively cost-effective iPhone XR. This points to Apple’s disappointing demand for the new iPhone.
Declining iPhone XR Sales
Apple had its iPhone manufacturers setup dedicated production lines to meet the demands. But the company did not receive any extra orders for the iPhone XR this season. The report added few more figures, citing supply chain sources. This means that Foxconn would produce around 100,000 fewer units daily to reflect the new demand which is down 20% to 25% from the original expectations.
“For the Foxconn side, it first prepared nearly 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 now,” the Nikkei quoted a source as saying.
The Taiwanese manufacturer Pegatron faces a similar situation. They have also halted their production line and are waiting for further orders from Apple. “The utilisation for the XR production is not reaching its maximum capacity now,” the source said.
Wistron, a smaller iPhone manufacturing company has also been told to halt its production line. The supply chain sources say that the company will not receive orders for iPhone XR this holiday season.
The company is now reviewing iPhone demand every week to adjust orders quickly in response to the market. The company also said it will not disclose unit shipments for its products from now on. This sudden change in policy has raised concerns about the American tech giant. This move will make it difficult for other partner companies to calculate their profits. Apple has not provided much information about the issue as of now.