Apple told its main phone assemblers, Foxconn and Pegatron, to stop plans for additionalproduction lines, a report said Monday.
The order to the two Taiwanese companies suggests that demand for cheapest of the 2018 iPhones hasn’t lived up to Apple’s expectations, according to Nikkei, which cited anonymous sources.
“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 by now,” a source told the Japanese financial paper.
That’d mean the company would make around 100,000 fewer XRs, the report noted, while a source within Pegatron said “XR production is not reaching its maximum capacity now.”
Apple reportedly asked smaller Taiwanese assembler Wistron to prepare for rush orders, but it won’t be getting XR orders this holiday season.
However, Apple has ordered around 5 million moremodels (mostly made by Pegatron) and models (primarily from Foxconn), bringing the order for those to 25 million, the report said. The two 2017 iPhone 8 models start at $600 and $700 respectively, compared to $750 for the XR.
The Cupertino, California, company said last week, and noted that it would for iPhones, iPads and Macs.
Neither Apple, Foxconn, Pegatron nor Wistron immediately responded to requests for comment.
: Apple’s higher iPhone, iPad Pro prices are the new normal.
: Big beautiful tablet? Yes. Flexible computer? TBD.