Apple recently announced the iPhone XS, XS Max and the iPhone XR. Now, we were expecting that the iPhone XR will be sold in great numbers. But that isn’t the case if sources close to Apple are to be believed. According to them, Apple has halted the production boost which the company has planned for the iPhone XR. This production boost was planned by the company in anticipation of huge demand for the iPhone XR. However, the company has told its suppliers that the iPhone XR sales are lesser than expected.
This means that there is enough inventory at Apple’s disposal of the iPhone XR. To recall, iPhone XR was launched as the budget iPhone this year. However, the iPhone XR still costs $749 for the base variant. Apart from that, the iPhone XR has been launched in various different colours too. Coming back to the Apple iPhone XR demand, sources have said that “For the Foxconn side, it first prepared nearly 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,”
If we talk raw numbers than this means 1 lakh fewer units of the iPhone XR will be produced every day. Also, we have been told that this is 20-25% lower than the originally estimated demand. The surprising thing, however, is that Apple has requested more units of the Apple iPhone 8 models. Apple has demanded even more production of the iPhone 8 and 8 Plus variants.
This is due to the high demand of the older iPhone models. This demand is because the iPhone 8 starts at $599 which is $150 lower than the base model of iPhone XR. Thus, it also suggests that the iPhone buyers in the U.S. are also becoming more budget conscious. The source added that Apple has earlier planned around 20 million units of older iPhones. However, this figure has been moved up to 25 million units seeing the higher demand in the older models.