It's possible iPhone XR demand isn't meeting Apple's expectations, but exactly the reason that's happening is hard to determine. The iPhone XR has received glowing reviews from users and the press, but the phone is still one of Apple's pricier models-which may be affecting demand.
"Combined with the continued strong momentum we're seeing among its iPhone 8 and 8 Plus, these sales have contributed to a 5.0 percentage point increase in OS share for Apple in the USA - the biggest gain seen worldwide this quarter. iPhone 8 was the top selling model in the United States over the quarter, with a 9.4% share of the handset market, and with iPhone XR launching outside this period we'd expect Apple share to tick up further towards the end of the year".
"We caution investors not to lose sight of the massive metamorphosis on the horizon at Apple being led by the services business", Ives wrote in a research report published Monday.
The report, in Nikkei, states that demand for the iPhone XR has been "disappointing".
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Cutting corners: iPhone manufacturers are not able to make full use of their production capabilities and are closing down unneeded assembly lines.
Foxconn production of the iPhone XR is said to be down as much as a quarter from the original goal. According to sources in the supply chain, smaller iPhone assembler Wistron was asked to stand by for rush orders, but after the decision of cancelling the production boost, it is not likely to receive any orders this holiday season.
Healthy early sales of iPhone XS and iPhone XS Max models in the States are good news for Apple. Apple previously planned 20 million units for the older iPhone models this quarter, but raised the figure to 25 million units, the individual said.
The Nikkei reported in June that Apple expected to ship about 20 per cent fewer iPhones this year compared with the same time last year.