Apple forced to make iPhone XR supply adjustments as manufacturers struggle to ramp up production

Apple forced to make iPhone XR supply adjustments as manufacturers struggle to ramp up production
Deliveries of the iPhone XR are still a few weeks away, but manufacturers are already churning out the new handset in preparation for the customer onslaught that will start with preorders on October 19.

Apple is relying on two companies for the vast majority of iPhone XR production: Foxconn and Pegatron. Combined, they’re expected to make around 90% of iPhone XR orders. The XR will likely be competing with the iPhone XS Max for best-selling phone of Apple’s 2018 lineup.

According to sources in China, the initial split between the companies gave Foxconn around 60% of the orders and Pegatron the other 30% of their combined share. As pressure increases on the manufacturers to deliver millions of new iPhones, it seems that Pegatron’s output isn’t as high as Apple was hoping. The manufacturer is said to be suffering from reduced yields of completed handsets. This forced Apple to adjust the order ratio between the two companies even more in favor of Foxconn, which will get to make significantly more iPhone XRs than originally planned.

There are two main causes for Pegatron's under-performance, the report says. One is delayed shipments of parts produced elsewhere. Apple is relying on dozens of different companies for iPhone components and, obviously, Foxconn and Pegatron can’t assemble a device if even a single part is missing.

The other, a more surprising one, is worker shortages in the Chinese manufacturing facilities. Worker shortage in China might sound like an oxymoron, but manufacturing plants in China often make the news for their extreme working conditions, which likely deters at least some of the potential employees. It appears that Pegatron is not offering enough compensation to fill the open positions.

The iPhone XR is Apple’s cheapest 2018 model, starting at $749 for the 64GB version. Deliveries are expected to start October 26.

Related phones

iPhone XR
  • Display 6.1" 828 x 1792 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A12 Bionic, Hexa-core, 2490 MHz
  • Storage 256 GB
  • Battery 2942 mAh(25h talk time)

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22 Comments

1. Vokilam

Posts: 1033; Member since: Mar 15, 2018

See, no one really cares if it’s OLED or LCD. OLED screens are overhyped.

3. notfair

Posts: 687; Member since: Jan 30, 2017

it's the cheapest that's why everyone is buying it. sometimes people make compromises to achieve/obtain something. people are poor but still want to have a high social status because of the ego.

5. Leo_MC

Posts: 6389; Member since: Dec 02, 2011

And how do you explain people ordering more expensive Max'es instead of cheaper XS?

6. NateDiaz

Posts: 1082; Member since: Mar 03, 2018

You shouldn't of asked that question, Leo. This guy can't answer logical questions.

7. Leo_MC

Posts: 6389; Member since: Dec 02, 2011

Everybody has a logic behind an idea, it's just that sometimes it is bad logic :).

11. notfair

Posts: 687; Member since: Jan 30, 2017

@LEO_MC are you referring to this article?https://www.gsmarena.com/apple_iphone_xs_max_outselling_iphone_xs-news-33434.php it doesn't mean anything because real numbers are not shown and obviously you missed my point and it just shows how close minded you are.

13. perry1234

Posts: 623; Member since: Aug 14, 2012

Upvoted. Indeed you are right. These days good quality OLEDs are the best of both worlds. Great colour accuracy when needed, or oversaturated colours when needed. The entry point of $749 and the best battery life due to relatively lower resolution display is indeed the main factor behind high XR demand. The variety of colours help its case too.

16. Leo_MC

Posts: 6389; Member since: Dec 02, 2011

I am referring to all the data that's been released over the years, after the 7 arrival. I'm taking random (google returned) articles: "Analysis of almost 32,000 pre-order receipt emails reveals that the breakdown was 55% Plus, 45% regular." - 09.2016 "Of all iPhone 7 series phones sold during November and December, roughly 60% were the larger iPhone 7 Plus" - 01.2017 "Apple shipped 6.3 million iPhone 8 Plus devices versus 5.4 million iPhone 8 models" - Q3 2017 "iPhone X Outsold iPhone 8 And 8 Plus By 2:1" - 02.2018 And now the Max outsells the regular xs by 4:1 (if we are to believe the news). The more expensive iPhone model constantly outsold the cheaper models, which means Apple users are hardly making compromises (unless they compromise usability for larger battery times). It also means that the number of status concerned Apple users is declining, because a poor person would get a cheaper phone (SE, 6s, 7), while the reality is that more and more users go for the expensive models. Another thing, I have read an article on PA that was saying that the most ordered Max model was 256 GB, which again goes against everything you have ever said: it's not the cheapest (not even the cheapest Max), the 64 GB variant is exactly the same as 256 one (you can't show off your internal storage), it has no compromises. This is my logic. Would you care to elaborate yours?

17. cmdacos

Posts: 3818; Member since: Nov 01, 2016

Because I can walk into a store and get an excess Maxipad with $0 down. The sticker price means nothing.

19. Leo_MC

Posts: 6389; Member since: Dec 02, 2011

You have to at least pay the sales tax :). But that is credit, which is a different thing (you only get it, if you have a good history, if you don't owe too much, if you are eligible etc).

18. damonarena

Posts: 39; Member since: Apr 30, 2018

he did't say everyone is poor but poors will buy iphone xr and it will outsell iphone xs and xs max

20. Leo_MC

Posts: 6389; Member since: Dec 02, 2011

Poor people live out of social well fare; they don't have money for mobile phones and they definitely don't have money for iPhones.

12. Cat97

Posts: 1726; Member since: Mar 02, 2017

Correct. I have an S7 Edge and (albeit after 2.5 years) it has the keyboard permanently burnt into the screen.

2. Mitsjke

Posts: 29; Member since: Mar 28, 2015

Correction: the XS models aren't that popular and Apple tries to sell more of these by creating an XR shortage?

4. scarface21173

Posts: 631; Member since: Aug 17, 2014

This phone is a $1000 in the uk, a joke which is not funny.

9. taz_chaz

Posts: 135; Member since: Aug 29, 2014

the max storage 256gb is 899 pounds mate...

14. ady_lad

Posts: 83; Member since: Jul 17, 2013

F*** that mate, unless if you are locked in the Apple ecosystem...it's not worth it.

15. scarface21173

Posts: 631; Member since: Aug 17, 2014

i said dollars not pounds

8. Yousefjaber206

Posts: 102; Member since: Jan 09, 2018

Long a*s excuse just to say we want people to buy more Xs

10. MarvzIsFallen

Posts: 646; Member since: Aug 11, 2017

These will sell like hotcakes especially the red and blue variants.

21. AfterShock

Posts: 4146; Member since: Nov 02, 2012

One manufacturer has 60% of production and the second manufacturer the other 30%?

22. Jrod99

Posts: 696; Member since: Jan 15, 2016

These will sell good but sure Apple has notice how the Max is more popular.

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