Apple's market capitalisation (M-Cap) or market value slipped below the $950-billion mark as shares of the iPhone maker fell, news agency Reuters reported. This has led the company to cancel a so called "production boost" for the model.
"For the Foxconn side, it first prepared almost 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", the Nikkei quoted a source as saying. It's possible iPhone XR demand isn't meeting Apple's expectations, but exactly the reason that's happening is hard to determine. However, it is now using only around 45 lines and does not require any additional production capacity. 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 shares sank as much as 4.5% Monday following a report that the tech giant has scaled back production orders for its new entry-level iPhone XR model.
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The iPhone XR also managed to get glowing reviews, both from the critics and users, but it is still one of the pricier models, which may be affecting the smartphone demand.
In contrast, the iPhone XR's $750 starting price made it seem a relative bargain.
Apple also stoked worries about iPhone sales last week when it said that beginning this quarter, it will no longer break down unit sales for iPhones, iPads and Macs. That's down 20% to 25% compared to Apple's most optimistic prognosis. "Last year, Apple gave rush orders for the iPhone 7 series following the launches of the iPhone 8 series and premium iPhone X", the Japanese financial newspaper 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.