Apple cancels iPhone Xr production boost

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The iPhone XR has received glowing reviews from users and the press, but the phone is still one of Apple's pricier models-which may be affecting demand.

Meanwhile, Pegatron, which is another key partner of the Cupertino-based tech giant, has had to "suspend plans to ramp up production", now "awaiting further instructions", according to supply chain sources that are typically right about these things.

Indeed, it was widely hailed as the unexpected hit of Apple's 2018 iPhone event.

In contrast, the iPhone XR's $750 starting price made it seem a relative bargain.

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Cutting corners: iPhone manufacturers are not able to make full use of their production capabilities and are closing down unneeded assembly lines.

Apple Inc. has told Foxconn and Pegatron to halt plans for additional production lines dedicated to iPhone XR, the Nikkei reports, citing unidentified people familiar with the matter. The move will reduce total possible iPhone XR production by 100,000 units per day over the next few months, according to the report. They are "suspending plans to ramp up production and awaiting further instructions from Apple".

Apple had asked Wistron, one of its smaller manufacturing partners, to "stand by" in case iPhone XR demand exploded. The device looks like the more-expensive iPhone XS and iPhone XS Max, but comes with a cheaper LCD screen, instead of the OLED display you'd find in the higher-priced models. The iPhone XR hit shelves in October, undercutting the iPhone XS by $250 despite offering much the same style and abilities.

"Suppliers of iPhone 8 and iPhone 8 Plus are getting a combined order of around 5 million more units", Nikkei report quotes a source as saying. The publication notes that Apple had previously planned 20 million units for the older iPhone models this quarter, but raised the figure to 25 million units.

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