Apple Halts iPhone XR Supply Over Weak Demand

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According to a report by Nikkei Asian Review, the Cupertino, California based company has asked its top smartphone assemblers- Foxconn and Pegatron- to halt the production lines dedicated to the low-priced iPhone.

On Friday, Apple's stock declined 6.6%, a day after it provided guidance for the holiday December quarter that fell short of Street expectations.

The analyst predicts the company's Services business, which includes its App Store, Apple Music, and Apple Pay offerings, will grow 20% annually and rise more than $50 billion in sales by fiscal 2020.

Foxconn initially built out 60 assembly lines for the iPhone XR, expecting extremely high demand for the unit.

"The utilization for the XR production is not reaching its maximum capacity now", the source said.

Talking points from the Premier League weekend
But the Uruguayan worldwide is the type of player Arsenal lacked in the final years of Wenger's reign. It must be good for Matteo Guendouzi to have a player like Alexandre Lacazette help him in that way.

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. While other, pre-launch supply-chain reports had even suggested that at one point, Apple was preparing to boost production of the mid-range handset by as much as 50 percent based exclusively on higher-than-expected sales outlook.

In short, the sky isn't falling and iPhone sales aren't about to drop drastically.

Apple closed just above $200 on Monday amid a wider tech sell-off that has seen other FAANG stocks - Facebook, Apple, Amazon, Netflix, and Google - fall in recent weeks.

Specifically, Rosenblatt Securities Managing Director and top research analyst Jun Zhang foresees an iPhone X production ramp-up of between 1 and 2 million units for the holidays.

In contrast, the iPhone XR's $750 starting price made it seem a relative bargain. Foxconn and Pegatron each said they would not comment on specific customers or products. The XR model borrows its looks from the iPhone X and features an all-screen glass and aluminum design with a 6.1-inch Liquid Retina LCD display. Apple is instead apparently requesting more iPhone 8 and iPhone 8 Pluses, to the tune of 5 million additional units, for a total of 25 million older iPhone units requested for the quarter.

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