Apple Has Reportedly Put the Brakes on Additional iPhone XR Production
Apple’s recently released iPhone XR might not need another production round to boost supply.
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. The move will reduce total possible iPhone XR production by 100,000 units per day over the next few months, according to the report.
Apple’s iPhone XR was the third model the company unveiled in September. The device looks like the more-expensive iPhone XS and iPhone XS Max, but comes with a cheaper LCD screen, instead of the OLED display you’d find in the higher-priced models. And at a starting price of $749, it’s the most affordable new iPhone on store shelves.
The company’s decision to not expand production lines doesn’t necessarily suggest problems. It’s possible iPhone XR demand isn’t meeting Apple’s expectations, but exactly the reason that’s happening is hard to determine. It’s possible, for instance, that overall iPhone demand is down and Apple is reducing its production costs. It’s also possible that more people are opting for other iPhones, leaving Apple to modify its original plan.
According to a Nikkei source, Apple’s decision to reduce iPhone XR production came alongside an additional order of 5 million units for its older iPhone 8 and iPhone 8 Plus. According to the report, demand is still strong for those models and Apple not expects to produce 25 million iPhone 8 and iPhone 8 Plus units during the fourth quarter.
The report follows Apple’s decision last week to stop providing unit-sales figures in its quarterly earnings, making it even more difficult going forward to determine individual unit success.
Apple did not immediately respond to a Fortune request for comment on the report.