A dimmer outlook for the new Apple iPhone XR smartphone has reportedly forced Apple to produce less items of the new model, which is set to go for sale in late October.
Nikkei Asian Review's sources from Taiwan claim that Apple has signaled disappointing demand for the new iPhone XR, telling its top smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to the new cost-effective. The report says that Foxconn was initially prepared nearly 60 assembly lines for Apple's XR model, but uses only around 45 production lines. That means Foxconn would produce around 100,000 fewer units daily to reflect the new demand outlook -- down 20% to 25% from the original optimistic outlook.
Pegatron is said to be facing a similar situation, suspending plans to ramp up production and awaiting further instructions from Apple.
Apple also had asked smaller iPhone assembler Wistron to stand by for rush orders, but the report cites "supply chain sources" as saying that the company will receive no orders for the iPhone XR this holiday season.
The iPhone XR debuted alongside the iPhone XS and top-of-the-line XS Max. It's starting price is $749.
Apple did not provide any comment.
Foxconn and Pegatron each said they would not comment on specific customers or products.
Apple gave a lukewarm forecast for the holiday season on Thursday. The company also said it will cease disclosing unit shipments for iPhones, Macs and iPads beginning in the December quarter. The unexpected policy change raised concerns that the U.S. tech giant is struggling to spur unit sales growth looking ahead.
Huawei Technologies snatched Apple's global No. 2 smartphone share for two straight quarters this year, according to IDC.