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 64 GB
  • Battery 2942 mAh(25h talk time)

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12 Comments

1. Vokilam

Posts: 1273; Member since: Mar 15, 2018

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

3. notfair

Posts: 755; 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.

12. Cat97

Posts: 1923; 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: 700; 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: 700; Member since: Aug 17, 2014

i said dollars not pounds

8. Yousefjaber206

Posts: 115; 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: 4147; Member since: Nov 02, 2012

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

22. Jrod99

Posts: 757; Member since: Jan 15, 2016

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

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