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. The publication says Apple has told its assemblers Foxconn and Pegatron to halt plans for additional production lines for the iPhone XR. A source familiar with the situation said:
“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.”
All in all, if Apple really is opting to not enable extra production lines for the iPhone XR it means around 100,000 fewer iPhone XR models will be produced every day during the next few months. The iPhone XR has received glowing reviews from users and the press, but the phone is still one of Apple’s pricier models–which may be affecting demand. The phone starts at $749.
Yet Nikkei is also reporting that while Apple may be choosing not to initiate extra reserved production lines for the iPhone XR, the company is boosting its production of the iPhone 8 and iPhone 8 Plus this quarter by an extra 5 million units. Those phones are about 20% cheaper than the iPhone XR, showing that demand for iPhones is still strong but that some people aren’t willing to shell out the big bucks just to have the newest model.