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Apple Slashes iPhone XR Productions As Retailers Slash Apple Inventory

Apple is facing a new crisis with carriers telling ChannelNews that they have minimised the risk of the new iPhone XR by reducing their inventory of the new Apple iPhones.

Indications are that the cheap iOS smartphone is not the “hot seller” that was initially expected with manufacturers Foxconn and Pegatron told to slash manufacturing by up to 25%.

Instead Apple is now punting on the old iPhone 8 to top up sales as their premium top end models are also not selling as well as Apple anticipated.

Over the weekend Apple said it would no longer disclose how many iPhones, iPads and Mac computers it sold each quarter.

Without this data, investors will not be able to track the average selling price of iPhones, a crucial number for assessing whether consumers are balking at paying up for Apple’s higher-priced phones.

The decision, along with Apple’s disappointing forecast for this quarter’s sales, saw the company’s stock price crash more than 7 per cent.

The tech giant requested Foxconn and Pegatron keep its iPhone XR production lines at 45 and not expand them to the 60 production lines it had initially planned, the Nikkei reported citing sources who claim to have knowledge of its plans. The move will reduce total possible iPhone XR production by 100,000 units per day over the next few months, according to the report.

Apple’s iPhone XR was the third model the company unveiled in September. The device looks like the more-expensive iPhone XS and iPhone XS Max, but comes with a cheaper LCD screen, instead of the OLED display you’d find in the higher-priced models.

The 2017 iPhone 8 and iPhone 8 Plus are still cheaper in Australia and are still selling reasonably well according to Telstra executives.