Apple posts 20pc revenue boost to $62.9bn for Q4

Joshua Bennett
November 8, 2018

Although Apple never said as much when it launched the Apple iPhone XR in September, its fairly obvious the device is meant to be more a direct competitor with the Android market.

iPhone XR debuted alongside the iPhone XS and top-of-the-line XS Max.

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.

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.

Tung's remarks are tantamount to a denial of rumors that claimed Apple had lowered the proportion of iPhone XR orders allocated to Pegatron to 35%, and switched more orders to Foxconn Electronics, as Pegatron's production had been affected by shortages of labor and some key components. Whether things change or not, that remain to be seen.

While Apple had great expectations for the iPhone XR, it's now ordering more iPhone 8 and 8 Plus models from its partners.

"The main questions are why do this now and is Cupertino hiding something (e.g., decelerating iPhone unit sales)?"

"If the reports are accurate, we do find it somewhat disturbing that this would take place so early after the launch of the iPhone XR", Angelo Zino, an analyst at CFRA, said of the Nikkei report. "The moves to add orders for year-old iPhone models while suspending extra production for the latest product illustrates Apple's lack of innovation and inability to energize consumers with such a pricing strategy".

Apple did not respond to Reuters' request for comment, while Foxconn and Pegatron each said they would not comment on specific customers or products.

Apple gathered all the negative attention past year when it was found to throttle older iPhones without notifying the users anywhere. And will instead supply Apple will far fewer iPhone XR handsets than originally expected.

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