Apple reportedly cancels iPhone XR production boost

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Last year, Apple had to face one of the most controversial year endings when the infamous performance throttling feature was discovered to bog down older iPhones.

Pegatron XR production also isn't reaching maximum capacity, and Wistron, a smaller iPhone assembler, won't receive any orders for iPhone XR this holiday season.

According to Nikkei, Apple has told smartphone assemblers Pegatron and Foxconn to halt plans for additional production lines that they were to dedicate to the iPhone XR.

However, to enhance the company's global deployment, Tung said that Pegatron is studying the feasibility of producing in the Southeast Asia region and will make some adjustments if necessary.

Apple on Monday did not respond to Reuters' request for comment.

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Since it's the cheapest of the new iPhone trio, you'd expect the iPhone XR to be the best selling of the bunch, but apparently that's not how things work in Apple land. The move will reduce total possible iPhone XR production by 100,000 units per day over the next few months, according to the report. Reportedly, Apple has instructed three separate suppliers to either reduce or completely eliminate production expectations for the new device.

"For the Foxconn side, it first prepared almost 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".

Apple shares dipped as much as 4.5 per cent to hit an intraday low of $198.17 in early deals, from the previous close of $207.48. Apple is also said to have revised planned units for older iPhone models for this quarter from 20 million to 25 million.

This information may help explain why Apple provided a dim forecast for iPhone sales in the current quarter.

The analyst predicts the company's Services business, which includes its App Store, Apple Music, and Apple Pay offerings, will grow 20% annually and rise more than $50 billion in sales by fiscal 2020.

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