“Apple has signaled disappointing demand for the new iPhone XR, telling its top smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to the relatively cost-effective model that hit shelves in late October, sources say,” Lauly Li and Cheng Ting-Fang report for Nikkei. “‘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,’ a source familiar with the situation said.”
“Fellow Taiwanese manufacturer Pegatron faces a similar situation, suspending plans to ramp up production and awaiting further instructions from Apple, a supply chain source said,” Nikkei reports. “The California-based tech company instead is requesting more of the older iPhone 8 and iPhone 8 Plus models, which are up to 20% cheaper than the XR’s starting price of $749. ‘Suppliers of iPhone 8 and iPhone 8 Plus are getting a combined order of around 5 million more units,’ one source said. Apple previously planned 20 million units for the older iPhone models this quarter, but raised the figure to 25 million units, the individual said.”
Read more in the full article here.
MacDailyNews Take: More worthless, stock price-manipulating “channel checks” out of Nikkei.
Smart investors should recognize history and profit accordingly.
Even if a particular data point were factual it would be impossible to accurately interpret the data point as to what it meant for our overall business… There is just an inordinate[ly] long list of things that would make any single data point not a great proxy for what’s going on. Apple CEO Tim Cook, January 23, 2013
SEE ALSO:
Apple’s revolutionary iPhone X was the world’s best selling smartphone in Q118 – June 14, 2018
Nikkei again claims ‘weak demand’ for iPhone X despite much evidence to the contrary – February 20, 2018
iPhone X drives smartphone revenue dominance; Apple made more money in Q417 than the rest of the smartphone makers combined – February 16, 2018
Apple iPhone took more than half of worldwide smartphone revenue share in Q417, a new record – February 15, 2018
Apple supplier says report of iPhone X production cuts was overstated – January 30, 2018
Another January, another misleading iPhone supply cuts story from Nikkei – January 29, 2018
Apple stock drops after Nikkei report of iPhone X production cut – January 29, 2018
Canalys: Apple shipped 29 million iPhone X units in Q4 2017; world’s best-selling smartphone over the holiday season – January 23, 2018
Reports of Apple cutting iPhone X orders make no sense – January 2, 2018
Apple stock tumbles on one poorly-sourced report of low iPhone X demand – December 26, 2017
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017
Nikkei: Apple to decrease iPhone production 10% in first quarter of 2017 – December 30, 2016
Nikkei proclaims ‘iPhone 7’ Dead On Arrival; bemoans Apple’s ‘lack of innovation’ – May 12, 2016
Japan’s Nikkei, The Wall Street Journal blow it, get iPhone demand story all wrong – January 16, 2013
Did Apple reduce 4-inch Retina display orders due to improving yields? – January 15, 2013
Analysts: iPhone 5 demand ‘robust;’ ignore the non-news noise – January 15, 2013
Apple iPhone suppliers decline on report orders cut by 50% – January 15, 2013
Apple swoon erases $17 billion from stock market – January 14, 2013
Apple iPhone 5 production cut signaling a new product release? – January 14, 2013
Apple drops to 11-month low on old reports of component cuts – January 14, 2013
The strange math of Apple’s alleged massive iPhone 5 component cuts – January 14, 2013
UBS analysts: Apple iPhone component order reduction ‘old news’ – January 14, 2013
Apple pulls down U.S. futures – January 14, 2013
Apple shares drop below $500 after reported cuts in iPhone 5 parts orders – January 14, 2013
Yes, but I’m sure the SEC will be checking this quickly, just like the last time. /sarc
The only reason I’d like to see iPhone sales drop is that maybe the, at the last, it will jolt Apple into better servicing and keeping updated their Mac line realizing every revenue source is an important one. Stop the neglect Tim, Phil, Jony and lazy Eddie!
Exactly. And care about the users of iPhone SE.
Exactly right, Peter. It looks like market religion is finally coming to wake up the clueless tone-deaf Apple leadership in more ways than one…
Ugg.What Apple just did to its investors is wrong
https://apple.news/ACPtRq0Z4Sr2GMzTLzslalQ
The line is too complicated with similarities.
Drop the 7 and 8 then replace with smaller SeXr for $500.
I will wholeheartedly second that! The first iPhone in 2007 fully loaded was $500, I bought it on day one. My two-year old SE fully loaded was $500. Absolutely no reason Apple cannot offer a budget conscious phone that will sell well in deplorable flyover country and countries like India. $1,200 for the flagship phone is way OVERPRICED! When a phone costs more than a computer, puhleeze! The price for owning an effete snob premium product is no longer in my budget. Thank you Tim, for nothing but GREED.
The slow decline has begun…
Lies, lies, and more lies.
Apple has finally started to unravel. It’s no coincidence that in the quarter Apple is struggling to sell iPhones….low and behold ‘we won’t tell you how many we sold.’ Pfffft. They’ve made them too pricey for not just most folk..but the vast majority of folk. Especially when a phone like the 7 is still an excellent bit of kit for the average user. They’ll back track next year but will spin it..the iPhone 11 will be less expensive than the XS. MDNs straw poll speaks volumes..most people ain’t buying the margin driver. Enoughs enough timmy.
Ist off. Nikkei is noting but a fud generator.. so chill and take everything they say with a huge grain of salt.
2nd.. this years line up is the best i have seen in years.
Whats all the complaining about?
Iphone lineup is great.
Macmini is back with full force.
New macbook air is awesome.
’and the new iPad pros are absolutely to die for!
Ok mac Pro is missing still along with promised displays..
but we knew thise se are due in 2019( yes ignored too long, but thats the past )
In the neanwhile there are the imacs… and imac pros are more than efficient enough for most power users.
So lets chill and see the good , rather than roll with the old monentum mindlessly .
One thing is for sure everyone:
There will never be a time when everybody is happy with everything. Never!
Tim is doing a great job for the most part.
And Apple is listening and delivering. (For the the most part)
Im happy with what i see.
Do i have gripes.. you bet.
But i see the good and i see the positive trend in the lineup.