Apple already telling suppliers to cut down expectations for iPhone XR orders

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

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"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", the Nikkei quoted one source as saying.

Apple Inc's Asian supplier and assembler stocks fell on Tuesday on a media report that the iPhone maker had told its smartphone assemblers to halt plans for additional production lines dedicated to its new iPhone XR.

Both Foxconn and Pegatron are used by Apple to assemble its smartphones, alongside Wistron. According to Nikkei, this means that Foxconn will be producing almost 100,000 units less every day based on the new forecasts available.

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.

Apple has reportedly shelved plans to expand iPhone XR production, with claims that demand for the more affordable smartphone has underwhelmed. "The utilization for the XR production is not reaching its maximum capacity now", another source said.

Though he did not disclose the names of the new products or the client, Tung was obviously referring to the new iPhone devices, according to industry sources. So it looks like customers are considering those the true lower-priced alternatives to the XS and XS Max, and not the XR. These phones are about 20 percent less expensive than the iPhone XR.

"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 moves to add orders for year-old iPhone models while suspending extra production for the latest product illustrates Apple's lack of innovation and inability to energize consumers with such a pricing strategy".

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