Apple has ordered around 5 million more units of iPhone 8 and iPhone 8 Plus from suppliers, raising the total order to 25 million units this quarter, said the Nikkei report. Most - sensible - companies do this, because they want enough capacity at the product launch to accommodate demand, and then ramping this back after that initial demand.
Apple has informed several of its suppliers that expectations should be tempered for orders of the Apple iPhone XR.
However, it looks like the iPhone XR isn't selling as well as Apple might have hoped, according to a new report from Nikkei Asian Review.
Both Foxconn and Pegatron are used by Apple to assemble its smartphones, alongside Wistron. "The utilization for the XR production is not reaching its maximum capacity now", Nikkei's source stated. And if you liked smaller devices, the iPhone XR is actually the second-worst Apple phone to replace your old phone with - the iPhone XS is narrower, at 2.8 inches versus 2.98.
In 2016, Apple introduced a cheaper iPhone called the SE, at a starting price of $399, but failed to lure more customers to buy that product. The publication notes that Apple had previously planned 20 million units for the older iPhone models this quarter, but raised the figure to 25 million units. And ultimately, after Apple's continued considerable success, I'm not willing to bet that the company got its customer read wrong this soon after the iPhone's triple launch. The company suggested it would miss analysts' earnings targets for the usually busy holiday season, with demand in emerging markets lower than expected.
At Rs 76,900, the iPhone XR is still on the expensive side, and maybe some cashback, EMI and buyback offers could help Apple sell significant number of units. However, the update also brought the Performance Management for the battery to iPhone 8, iPhone 8 Plus and the iPhone X. The feature is enabled by default and will start throttling performance as soon as it detects a drop in consistency from the power reserve.