Apple to cancel production expansion for iPhone XR: report

Apple expects to place orders lower than usual for the cheapest iPhone XR in the 2018 iPhone lineup.

Apple has ordered its smartphone assemblers Foxconn and Pegatron to stop planning additional production lines dedicated to its new iPhone XR, Nicky Asia Review On Monday. According to the report, Apple shares fell nearly 4 percent. The iPhone, the cheapest of the three iPhones announced by Apple in September, has just entered the shelves, raising concerns that it is facing weak demand.

Nikke quoted a supply chain source and said that Apple would hurry to a small iPhone assembly maker, Wistron, to wait for an order, but said it would not accept orders for the iPhone XR this season. "Foxconn has prepared nearly 60 assembly lines for Apple's XR models, but now we have only about 45 production lines," he said, saying that the best customers do not have to manufacture many, he said. Apple is officially regarded as Foxconn's largest customer, known as Hon Hai Precision Industry Co. Foxconn and Pegatron did not comment on specific customers or products, but Apple did not respond to Reuters' request.

Nikkei's report a few days after Apple warned that Apple's key holiday season sales would be below Wall Street expectations, based in Cupertino, California. Angelo Zino, analyst at CFRA, said: "If the report is accurate, I am somewhat confused that it will be so soon after the release of the iPhone X." "Ivan Feinseth, an analyst at Tigress Financial Partners, said Apple's share price decline" is not the result of excessive performance. " I did not get it. "

Read: Apple does not introduce 5th generation competent iPhone before 2020: Report

"History has shown all sorts of statements about Apple's supply chain and endless predictions about slowing sales of iPhones and other Apple products are wrong," said Feinseth, who rated Apple's stock as "strong". The iPhone is about 20% less than the same period last year. In 2016, Apple introduced a cheap iPhone called SE for $ 399, but failed to attract more customers to buy it.

Separately, Apple shares fell for the second time since earnings reports were released, but this time Eisen's expectations for production and shipments are lower, Rosenblatt Securities said. CNBC Reported.

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