Apple is reportedly reining in production of its cheaper iPhone

Report: Apple cancels iPhone XR production boost

It has been reported that the company has halted the additional production of the smartphone. It's entirely possible that the reason Apple doesn't need very many XR's is that most customers are choosing the highest-end models or defaulting to the lower-end, cheaper products. As per the source, this means Foxconn would be producing 100,000 few units of the iPhone XR daily than initially estimated - a decline of around 20-25 percent. It's possible iPhone XR demand isn't meeting Apple's expectations, but exactly the reason that's happening is hard to determine.

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

Apple had initially informed Foxconn to set up almost 60 assembly lines for the iPhone XR.

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It's too early to tell if the iPhone XR will have a similar fate as the iPhone 5C. However, the update also brought the Performance Management for the battery to iPhone 8, iPhone 8 Plus and the iPhone X. The feature is enabled by default and will start throttling performance as soon as it detects a drop in consistency from the power reserve. According to sources in the supply chain, smaller iPhone assembler Wistron was asked to stand by for rush orders, but after the decision of cancelling the production boost, it is not likely to receive any orders this holiday season. Apple has ordered around 5 million more units of iPhone 8 and iPhone 8 Plus from suppliers, raising the total order to 25 million units this quarter, said the Nikkei report. "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". The company forecasted fiscal-first-quarter sales of $89 billion to $93 billion versus the average analyst projection of $93.02 billion.

Five years ago, Apple cut production orders for its plastic-backed iPhone 5C a month after its launch, fueling speculation of weak demand for the model.

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