The iPhone XR is a very good smartphone, despite the fact that it seems to be the "black sheep" of the X series, with lower resolution LCD screen and one camera. Apple expected that this model, equipped with the most powerful Apple chip and delivered in six different colors, will be a real hit and will represent the sales volume for the next fiscal year, but the reality of the market is different. The company has told its partners that it does not need additional production lines.
According to a Nikkei report based on sources coming up with Apple component suppliers, who knows the details of the partners that the company uses for production, the iPhone XR is sold under the initial projections. Additional production lines by Foxconn and Pegatron will no longer be used, while the third producer Wistron has been announced that it will no longer participate in the production of the iPhone XR at least for the holiday season.
In the case of Foxconn, Apple had to spend 60 iPhone lines on Apple's phones, but the company cut the volume to only 45 lines (which reduced iPhone XR orders by about 25%). Instead of iPhone XR, Apple ordered a larger volume of iPhone 8 and 8 Plus. Initially, the company planned to order 20 million units of past models, but the order now rose to 25 million. Foxconn produces iPhone 8 Plus, while Pegatron will still produce iPhone 8.
This comes immediately after Apple's financial report at the end of the third quarter, when Apple announced it would not offer the number of units shipped for devices (both iOS, IPhone and iPad, the Mac family or Apple Watch). The company believes that investors will be more than satisfied with profits and profits that are on the upward trend due to the increase in the average price per unit caused by the increase in the price of equipment from all product families over the last two years.