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.
Last week, Apple did warn that sales for this holiday quarter are likely to miss the expectations of Wall Street.
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.
Sadly, if a new report published by the Nikkei Asian Review this morning is accurate, the iPhone XR's sales performance hasn't been that great, which has prompted Apple to instruct its suppliers and contract manufacturing partners to reduce production. "The utilization for the XR production is not reaching its maximum capacity now", another source said.
A bunch of Apple's other Taiwanese suppliers fell sharply, including camera lens-maker Largan Precision Co, which was down more than 7 percent, and Flexium Interconnect, which fell 6 percent. This is not the first time, five years ago, when Apple launched the iPhone 5C with plastic back, it had cut production orders a month after its launch, which fuelled speculation of weak demand for the model.
Prince Charles, Camilla in Ghana on second Africa stop
He said Ghana was influenced by British values and institutional arrangements and that a large number of Ghanaians had been living in the UK.
Skyworks, a US-based supplier of semiconductors, reportedly failed to meet Apple's famously stringent quality standards for printed circuit boards (PCBs), which made the smartphone manufacturer "quickly drop" its orders. On the other hand, the iPhone XR did not appeal to the consumers as much as the company thought it would.
Apple stock closed down 2.8% on Monday, to $201.59 per share, the lowest level since August 1.
And are you surprised by the low demand for the iPhone XR?
"Suppliers of iPhone 8 and iPhone 8 Plus are getting a combined order of around 5 million more units", one source said. Apple is also said to have revised planned units for older iPhone models for this quarter from 20 million to 25 million.