Apple has told its cellphone manufacturer Foxconn and Pegatron to end gets ready for additional production lines committed to its new iPhone XR, the Nikkei reported on this Monday.
Apple shares drop almost 4 percent after the report, which fueled concerns that the iPhone XR, the cheapest of three iPhones, Apple revealed in September, was facing weak demand just days later it hit shelves.
The Nikkei said Apple had asked smaller iPhone assembler Wistron to remain by for rush, orders, apart from that the organization will get no requests for the iPhone XR this season.
“For the Foxconn side, it originally prepared almost 60 assembly lines for Apple’s XR model, but now uses just around 45 production lines as its best customer said it doesn’t have to produce that many by now,” Nikkei quoted as a source.
Apple launched the lower cost iPhone XR in the event, held in September, which is made of aluminum, along with two other models that are iPhone XS and XS Max.
Five years ago, Apple cut production orders for its plastic-backed iPhone 5C every month after its dispatch, fueling speculation of frail interest for the model.
The Cupertino, California-based organization notified a week ago that deals for the essential holiday quarter would probably miss Wall Street expectation.
Apple did not quickly react to Reuters’ ask for input.
Foxconn and Pegatron each said they would not remark on particular customers or items.