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

By Greg S ¬∑ 5 replies
Nov 5, 2018
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  1. Word has been sent from Apple to manufacturing partners Foxconn and Pegatron that additional capacity will not be required for producing the iPhone XR. This news arrives shortly after Apple has decided to stop sharing units sales on individual product lines.

    Wistron, one of Apple's lesser known iPhone assemblers, was reportedly asked to remain on standby for production of the iPhone XR earlier in the year, but will not be receiving any orders to produce more iPhones.

    Foxconn initially built out 60 assembly lines for the iPhone XR, expecting extremely high demand for the unit. Currently, only around 45 of the lines are being used with no sign of the last quarter being needed. According to Nikkei, this means that Foxconn will be producing nearly 100,000 units less every day based on the new forecasts available.

    Pegatron is believed to be in a similar situation where demand is not reaching the capacity of their assembly lines. The company is currently awaiting an update from Apple before deciding what to do with unused assets.

    Interestingly, the iPhone 8 and iPhone 8 Plus have had orders increase by more than 5 million units. Originally Apple had ordered 20 million of the last generation model but has since raised the order to 25 million.

    Apple has made it clear that iPhone sales this holiday season are going to miss the expectations of some investors. However, Cupertino is certainly not in a rough spot and continues to post extremely strong revenue figures. Apple will continue to evaluate demand on a weekly basis so that manufacturing partners are able to appropriately adjust for any changes.

    Permalink to story.

     
  2. OutlawCecil

    OutlawCecil TS Guru Posts: 513   +366

    Possibly related to the other news article where people FLOODED to T-Mobile stores for the OnePlus 6T? *snicker*snicker*
     
    Charles Olson and onestepforward like this.
  3. Lew Zealand

    Lew Zealand TS Addict Posts: 147   +108

    Flooded for OnePlus is like a dripping faucet with Apple's volumes.

    But does this news mean more or fewer people jumping off the roof at Foxconn?
     
  4. Humza

    Humza TS Addict Posts: 134   +99

    Super high prices and iOS 12, making more people stick to what they already have.
     
  5. captaincranky

    captaincranky TechSpot Addict Posts: 13,879   +3,266

    This really couldn't happen to a nicer or more deserving company.
     
    Charles Olson likes this.
  6. captaincranky

    captaincranky TechSpot Addict Posts: 13,879   +3,266

    Probably about the same or a few more from a percentage standpoint, but you'll be dealing with a smaller work force.

    The situation does summon to mind the old cliché about how, "less is more"....:D
     
    Last edited: Nov 6, 2018

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