Published: Tue, November 06, 2018
IT | By Lester Massey

Sketchy report claims iPhone XR sales are lower than expected

Sketchy report claims iPhone XR sales are lower than expected

Nikkei writes that the lack of innovation is hurting Apple. It's also possible that more people are opting for other iPhones, leaving Apple to modify its original plan.

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 Rs 76,900, the iPhone XR is still on the expensive side, and maybe some cashback, EMI and buyback offers could help Apple sell significant number of units.

The tech giant has requested that its manufacturing partners Foxconn and Pegatron keep its iPhone XR production lines at 45 and not expand them to the 60 production lines it had initially planned, the Nikkei is reporting, citing sources who claim to have knowledge of its plans. Foxconn, Pegatron and Wistron declined to comment.

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. "The utilization for the XR production is not reaching its maximum capacity now", another source said. Sporting a almost edge-to-edge display at a price point that is drastically lower than Apple's iPhone XS models, many analysts have been predicting that the iPhone XR will be a runaway hit this holiday shopping season.

The iPhone XR - priced starting at $749 - is meant to replace the iPhone 8 introduced a year ago. Originally Apple had ordered 20 million of the last generation model but has since raised the order to 25 million.

The latest iPhone may be one of the hottest flagships this year, but it seems like Apple has miscalculated demand for the product if a report from Nikkei is accurate.

Even if its never ending price creep for its devices is helping Apple boost the average selling price, it looks like some consumers may be put off by how much even the cheapest iPhone of 2018 ended up retailing for.

Like this: