Apple tells Foxconn and Pegatron to forget about opening additional production lines for iPhone XR?

Apple tells Foxconn and Pegatron to forget about opening additional production lines for iPhone XR?
Most analysts expected the "more affordable" Apple iPhone XR to grab the majority of new iPhone sales once the phone was released on October 26th. That's because of the model's pricing, which starts at $749 for the 64GB version compared to $999 for the comparable iPhone XS unit, and $1,099 for the 64GB iPhone XS Max. While the iPhone XR has the same A12 Bionic SoC under the hood, and carries most of the same features as its more costly siblings, it does not have 3D Touch and it sports a single camera on back. The iPhone XR also is equipped with a 6.1-inch LCD display compared to the 5.8-inch and 6.4-inch AMOLED displays used on the iPhone XS and XS Max, respectively.

But something has gone haywire with these analysts forecasts. It appears that the iPhone XR is not selling as well as anticipated. Recently, banking and securities firm JP Morgan told its clients that it now expects the cheaper 2018 iPhone model will account for 39% of new iPhones sold in the second half of 2018, down from a previous forecast of 47%. Longbow Research says that Apple is cutting its orders by 20% to 30% for the iPhone XS Max and iPhone XR. Instead, the company is raising orders for last year's iPhone 8 and iPhone 8 Plus.

Today, a new report from Digitimes states that two contract manufacturers used by Apple to produce the iPhone XR, Foxconn and Pegatron, have been told by Apple not to add additional assembly lines for the phone. Apparently, both companies had been previously told by Apple to be ready to add new production lines for the iPhone XR. However, those lines are not going to be needed.

A further indication that the iPhone XR is not selling as planned comes from top Apple analyst Ming-Chio Kuo from TF International. Kuo, who has an amazing track record, says that he cut his projection of shipments of the iPhone XR during the calendar fourth quarter of 2018 to the calendar third quarter of 2019 from 100 million units to 70 million.

The weaker than expected demand for the handset that was expected to be the best selling new iPhone during the holiday shopping season has investors dumping Apple's stock. From a closing price of $215.42 on the October 26th launch date of the iPhone XR, Apple's shares closed Friday at $193.53 for a larger than 10% decline.

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60 Comments

72. sissy246

Posts: 7129; Member since: Mar 04, 2015

It dosen't surprise me its just doing ok. I can see were ifans would go for the 8s for about the same money that offers more.

66. Jrod99

Posts: 783; Member since: Jan 15, 2016

A article that techscepic will love. 3,2,1

61. europeanguy

Posts: 1; Member since: Nov 18, 2018

It is amazing how Americans connect buying iphones with wealth status. Here in Europe mostly woman and teens carry iphones. Lets say they are less demanding users who have no need for custom active dual sims, expandable storage or torrent manipulation. Most of advanced users here use samsung or huawei, especially becouse apple gives only one year warranty, and other manufacturers two.

74. almostdone

Posts: 452; Member since: Sep 25, 2012

Also most iPhone users are not rich. They buy iPhones they can't afford so they take out long term contracts. The vast majority of people don't buy phones outright and can barely keep up with monthly repayments. A lot of these "rich" people are always in debt.

50. ShadowWarrior

Posts: 174; Member since: Aug 08, 2017

It is actually not that bad of a phone if you see it in-person. I think people just focused on the XS and XS Max because those were touted as the new iPhones and plus the XR had a late release that no one seemed to notice.

31. palmguy

Posts: 991; Member since: Mar 22, 2011

Apple = the in crowd, the hip people, the status symbol. Fanboys wouldn't be caught dead with a 2nd tier iOS device. It's the 5C all over again.

44. lyndon420

Posts: 6946; Member since: Jul 11, 2012

Are they capable of looking past the apple logo on each other's phone though?

19. SIGPRO

Posts: 2819; Member since: Oct 03, 2012

This happens when you sell crappy products for a high price, eventually it will bite you in the ass! Oh wait the fruit is already missing a chunk.......

39. midan

Posts: 3278; Member since: Oct 09, 2017

Selling 70 million units is a bad thing? :D

16. ahmadkun

Posts: 715; Member since: May 02, 2016

I don't know but i think affordable phone should be under $500 ..

10. obedchuni

Posts: 341; Member since: Jun 16, 2014

I used 3d as a short cut and its a nice feature to have....

9. Peaceboy

Posts: 640; Member since: Oct 11, 2018

Time to buy apple stocks. Manipulation at its best.

17. worldpeace

Posts: 3135; Member since: Apr 15, 2016

Nice try.. It will be really hard for Apple to raise it's stock just by selling their products, since they already release all their products this year (iPhones + iPad), normally it will raise their stock price because extra profit from their newest product, but looks like they didn't sell really well and their stock dropped instead. They'll need to make their shareholder buy more stock to keep their boat float.. Btw, they aren't trillion dollar company right now. You should sell your house and buy Apple stocks or more Apple products to make them trillion dollar company once again.

33. cncrim

Posts: 1590; Member since: Aug 15, 2011

Ok go a head, it is yours money. Without radical innovation, i dont see it buddy. Even Apple know this, stop report unit sale and start charge for everything the use to be free.

7. TheOracle1

Posts: 2340; Member since: May 04, 2015

The most expensive mid-ranger on the market. Simple.

36. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

No. A ohone with ok nky a 800p display is not a midranger. Its a lowend phone thst would csit about $250 from anybotyer OEM. For 1080p the phone is worth $650 tops. If it has a 1430p display then $750 woukd be a veey good deal. But $750, fornlower IP rating, lesser cameras, lesser display, no home button, no jack, no fast charger, no prenium headphones and so much morebut doesn't have. It is simply a bad vakue and people see that now. Or Apple was hoping no one buys them and just buy the otyer 2 instead so they could really make more selling a $350 phone for $1000+.

46. rouyal

Posts: 1603; Member since: Jan 05, 2018

What’s with your obsession with displays? Pull your nose out of staring at numbers. Why is my iPhone 8’s display sharper than the Oneplus’ 1080p display? Also, you glaze over the fact the A12 in the XR smokes anything that android offers right now.

54. whatev

Posts: 2469; Member since: Oct 28, 2015

He’s a joke, he once said recently that the processor on the GS7 is better than the A12, there you have it, his delirious mind is off the charts, he definitely needs to take his meds and go to rehab cause he’s not right, he’s got the guts to call other people trolls when he’s the one living 24/7 in apple articles saying how bad is apple and how stupid is the people who buy apple devices and then he also says he buys apple devices, omg what a messy head he has *smh

6. scarface21173

Posts: 702; Member since: Aug 17, 2014

I think people like the old form factor what they are used to. And the fact the older models are much cheaper.

32. cncrim

Posts: 1590; Member since: Aug 15, 2011

No, people want budget phone not a ripoff iphone. There are a lot of android phone can so every XR can for much less.

45. rouyal

Posts: 1603; Member since: Jan 05, 2018

It’s a shame that android seems to never get out of beta. Google should focus on making the core OS rock solid and “just work”, attract developers, get a consistent UI instead of changing every two years. It can do a lot. Though like a multitool, none of it really excels.

48. cncrim

Posts: 1590; Member since: Aug 15, 2011

It is shame you talk from ignorant stand point. Before give truth honesty opinion, buy $700 android and use it then come back give comparation android vs ios.

52. rouyal

Posts: 1603; Member since: Jan 05, 2018

I have used androids before. Very recently tried playing a few games on Android - issues with screen ratio cutting off part of the display. Also had several Bluetooth issues. Don’t come at me like I’ve never used android, I’ve been around the block. The problem with android - a $700 android phone will have the same core bugs as a $100 android.

57. wickedwilly

Posts: 794; Member since: Sep 19, 2018

I could say the same with the X, yet my S9, S8 and Note 8 are far better at fitting the content on the screen and I do not have to put up with an ugly notch interfering with my viewing experience. Nor do I have to put up with having to reduce the viewing area to a sizr not much more than the full-screen size of the tiny iPhone 8. I should add you get just as many bugs on an iPhone XS than any other iPhone, in the case of the X last year it was much worse than the lower iPhone models. My experience on Android is it is far less buggy than iPhones, so I do not need upgrades every 5 minutes. Upgrades that force me into a game of Russian Roulette with the fact my phone may be impaired or worse bricked every time I do one.

69. OneLove123

Posts: 1341; Member since: Aug 28, 2018

You're lying!

3. almostdone

Posts: 452; Member since: Sep 25, 2012

Even some iFans are not going to pay a premium price of $750+ for an inferior iPhone which may carry the stigma of being cheap or a cut down version. iPhone XR = iPhone Ten Reject?

12. BullDozer

Posts: 160; Member since: Dec 18, 2015

Xtra Ripoff

21. dimas

Posts: 3466; Member since: Jul 22, 2014

Even iphone 8 is a better deal than xr.

1. Vokilam

Posts: 1496; Member since: Mar 15, 2018

I told you, no one wants a phone without 3D touch!!!

2. Back_from_beyond

Posts: 1489; Member since: Sep 04, 2015

I wouldn't be surprised if >90% never even use it.

* Some comments have been hidden, because they don't meet the discussions rules.

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