Apple has canceled the additional production lines for its budget iPhone XR meant to cover the original expected demands for the phone, reported the Nikkei Asian Review. At Foxconn, only 45 production lines of the planned 60 are now being used.
But, if Nikkei and its supply-chain sources are accurate on any level, it would appear that Apple's 2018 iPhone pricing strategy may be backfiring. The reduction is to affect around 100,000 units per day, which will no longer be produced. The manufacturer has halted plans to boost production and it is now awaiting further instructions from the tech giant. The XR model borrows its looks from the iPhone X and features an all-screen glass and aluminum design with a 6.1-inch Liquid Retina LCD display. Apple has also asked smaller iPhone assembler Wistron to be on standby for rush orders. The company missed analysts' earnings targets in the usually busy holiday season with demand in emerging markets lower than expected. While "XR production is not reaching its maximum capacity now" sounds bad on the face of it, for the end user who wants to order an iPhone today and get one tomorrow.
Meanwhile, Americans can expect to work 6.3 days, on average, to afford the 64GB iPhone XS and 6.9 days for the 64GB iPhone XS Max.
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Earlier the company planned for the production of 20 million units for the older iPhone models, and now the figure raised to 25 million units.
Interestingly, the iPhone 8 and iPhone 8 Plus have had orders increase by more than 5 million units. It's entirely possible that the reason Apple doesn't need very many XR's is that most customers are choosing the highest-end models or defaulting to the lower-end, cheaper products.
We have heard some rumors that might explain why Apple has taken the decision to stop giving exact numbers for their device sales, and here they are.