Nikkei claims iPhone XR production cuts, Apple stock drops over 3%

“Apple has signaled disappointing demand for the new iPhone XR, telling its top smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to the relatively cost-effective model that hit shelves in late October, sources say,” Lauly Li and Cheng Ting-Fang report for Nikkei. “‘For the Foxconn side, it first prepared nearly 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,’ a source familiar with the situation said.”
“Fellow Taiwanese manufacturer Pegatron faces a similar situation, suspending plans to ramp up production and awaiting further instructions from Apple, a supply chain source said,” Nikkei reports. “The California-based tech company instead is requesting more of the older iPhone 8 and iPhone 8 Plus models, which are up to 20% cheaper than the XR’s starting price of $749. ‘Suppliers of iPhone 8 and iPhone 8 Plus are getting a combined order of around 5 million more units,’ one source 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.”
Read more in the full article here.
MacDailyNews Take: More worthless, stock price-manipulating “channel checks” out of Nikkei.
Smart investors should recognize history and profit accordingly.
Even if a particular data point were factual it would be impossible to accurately interpret the data point as to what it meant for our overall business… There is just an inordinate[ly] long list of things that would make any single data point not a great proxy for what’s going on. Apple CEO Tim Cook, January 23, 2013
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