iPhone XR production put on hold due to low demand

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iPhone XR production hold

Almost every September, Apple users anticipate the release of the new iPhone models. This year, Apple went over the top and released not just one, but three new models—the iPhone XR, XS, and XS Max. Today, it was announced that the tech giant will put a hold on production of one of the models—the iPhone XR.

Announced on Nov. 5, the phone, which already has been on sale since October, is no longer being made by Apple’s phone assemblers Foxconn and Pegatron due to low sales.

The iPhone XR is meant to be a more cost-effective version compared to other models. Apple’s smaller assembler, Wistron, is now on standby for rush orders.

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Instead of consumers purchasing the XR, they are opting to buy previous iPhone models, the iPhone 8 and 8s, as the cost is now significantly lower than even the XR, though the technology is not as advanced.

The iPhone XR features

The XR model is still up on Apple’s website as of Nov. 6, where it describes the phone as having the most advanced LCD display in the industry. It was set to feature a backlight that “allows the screen to stretch into the corners.”

The XR starts at $749, which is more affordable than the XS and XS Max (which start at $999). In addition, the XR is available in six different color finishes, making it stand out more than the other phones—similar to what Apple did with the iPhone 5C a few years back.

Too much supply, not enough demand

Production lines for the XR are significantly lower than originally planned. Only 45 were needed compared to the original 60—as the demand has been low. The demand is 20-25 percent lower than the original outlook, or 100,000 less units than first predicted.

But, the company will not entirely cease production. It will determine on a week by week basis what the demand is. Given that the holiday season is coming up, the iPhone XR could go back to being in high demand.