After lacklustre response, Apple pauses production of the iPhone XR

After lacklustre response, Apple pauses production of the iPhone XR

However, it doesn't bode well that the device is seeing such little demand, especially when you consider it delivers the same speed as the iPhone XS with many similar features - at a much lower cost.

According to a report Monday by Japan's Nikkei, Apple "signaled disappointing demand" for the iPhone XR by informing manufacturing partners Foxconn and Pegatron to halt plans for additional production lines of the smartphone targeted at price-conscious consumers.

Taiwanese assembler Pegatron Corp fell almost 4 per cent and rival Hon Hai Precision Industry Co Ltd (Foxconn) fell 2.5 per cent. Apple is widely considered the biggest customer for Foxconn. As a result, Foxconn will build 100,000 fewer units every single day than would have happened under Apple's original order.

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Other smartphone manufacturers, including Samsung and LG, also suffered. The company suggested it would miss analysts' earnings targets for the usually busy holiday season, with demand in emerging markets lower than expected. And then there is the "affordable" iPhone XR that starts at Rs 76,900 for base model, and goes all the way up to Rs 91,900.

In a unusual plot twist, Nikkei went on to cite Apple's decision to shift its focus towards "requesting more of the older iPhone 8 and iPhone 8 Plus models", which are about 20% cheaper than the iPhone XR ($599 vs. $749 base price). These phones are about 20 percent less expensive than the iPhone XR.

Meanwhile, a 9to5Mac post today paints a less-rosy market share picture for Apple in Europe, where the new Kantar Worldpanel data shows iPhone market share there dropping by 1.6 points across the top five markets and only growing in Germany by half a percentage point. Apple previously planned 20 million units for the older iPhone models this quarter, but raised the figure to 25 million units, the individual said. Other reason might be that Apple doesn't want investors and customers to keep on waiting for another successful 2015 when the company reached 231.22 million units sold.

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