Apple reportedly asked smaller Taiwanese assembler Wistron to prepare for rush orders, but it won't be getting XR orders this holiday season.
For starters, the claim that iPhone XR demand is exceedingly below expectations runs somewhat counter to a previous report from reputed analyst Ming-Chi Kuo who just recently raised his iPhone XR sales estimate for the December quarter.
The Cupertino, California-based company has blamed weakness in emerging markets and foreign exchange costs for a disappointing forecast for sales in the run-up to Christmas that are crucial to results for consumer electronics producers. Even more alarming, the report claimed that overall production might drop by as much as 25%.
At the lowest level of the day, Apple shares have registered a loss of 10.8 per cent in two days.
Before we dive into this, I want to recommend caution where Apple and iPhones are concerned.
Indeed, it was widely hailed as the unexpected hit of Apple's 2018 iPhone event.
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Piecing the details of the report together, it all appears to imply that more would-be iPhone buyers are opting to save the additional money by purchasing the older iPhone 8 or iPhone 8 Plus instead of the newer iPhone XR.
Apple closed just above $200 on Monday amid a wider tech sell-off that has seen other FAANG stocks - Facebook, Apple, Amazon, Netflix, and Google - fall in recent weeks.
Some lauded the mid-range handset for its iPhone XS-caliber performance, which is strategically available for a fraction of the price.
Pegatron apparently faces a similar situation, suspending plans to ramp up production of the iPhone XR and simply awaiting further instructions from Apple at this time.
"This performance management feature is specific to iPhone and does not apply to any other Apple products".
In short, the sky isn't falling and iPhone sales aren't about to drop drastically.