Apple refused to increase the production of iPhone XR due to low demand

The popular smartphone, but Apple was expecting more. Apple decided to reduce the pace of production iPhone XR by 20-25% in regard with the highest sales of smartphones, reports the Nikkei. Apple has asked Foxconn,

The popular smartphone, but Apple was expecting more.

Apple decided to reduce the pace of production iPhone XR by 20-25% in regard with the highest sales of smartphones, reports the Nikkei. Apple has asked Foxconn, which assembles iPhone XR, stop 15 production lines of original operating 60.

In addition, Apple reduced the number of orders for some accessories for the iPhone XR. According to familiar with the situation source, Apple has made this decision due to the fact that the demand for iPhone XR less than expected. Apple hoped that the iPhone XR will be the most popular iPhone in 2018. Smartphone really actively sold out, however, the expectations of the Apple was higher.

One reason for the cautious demand for the iPhone is called XR rapidly growing popularity of the iPhone 8 and iPhone 8 Plus. It is reported that Apple sent Foxconn an order for an additional batch of five million iPhone 8 and iPhone 8 Plus. This is necessary in order to meet the demand of buyers.

The second main reason the Nikkei experts call the continuing decline in the global smartphone market. In 2017, total smartphone sales around the world fell by 0.1%. In 2018, the fall should be even stronger.

Source: Nikkei.

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