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The demand for the iPhone XR did not meet Apple's expectations

Note: This article was originally posted on ValueQ, where may offer you an impressive discount. Make sure you check ValueQ before you make the purchase.
Even before the official announcement of the iPhone XR, some analysts were confident that this model would be in greater demand than the latest Apple flagships. The experts explained this with a relatively affordable price and fairly wide functionality of the new product. However, judging by the latest data, the demand for the iPhone XR was slightly lower than Apple had planned.


On the morning of November 12, Guo Minghao, a former analyst at KGI Securities and a current one at Tianfeng Securities has announced the iPhone XR shipment forecast, saying that between the fourth quarter of 2018 and the third quarter of 2019, iPhone XR shipments were estimated to be 100 million units. However, they are downgraded to 70 million units. The main reason is the reduction in purchasing power, the price of the iPhone XR and the competition of the Huawei Mate 20 series.


iPhone XR shipments were revised down by 30%-35% in the fourth quarter of 2018, or 3,000–35 million units; in the first and second quarters of 2019, they were lowered by 25–30% and 25–30%, respectively. 000–2,5 million and 1,000–15 million. Compared with the total shipment of 52 million iPhones in the first quarter of 2018, the total iPhone shipments in the first quarter of 2019 are expected to fall by 15%-20%, from 5,500 to 60 million. , 700–5, 2 million. Although the increase in shipments caused by the iPhone XS series and the lower price of the old iPhone can offset some of the declines in iPhone XR shipments, it does not prevent the decline in total shipments.
The increase in shipments of old iPhones in the first quarter of 2019 could not offset the decline in XR shipments. The lower cost of old iPhone components and assembly will have an impact on the profitability of suppliers. There will be operational risks in the next 6–9 months. Among the major suppliers, Apple’s board supplier Jialianyi and Apple’s touch screen supplier Nissha Printing (Japanese photo printing) can not benefit from the increased shipments of the old iPhone, so the revenue of the two suppliers will be seriously affected.
Guo Minghao expects that the mass production of new products by Apple in 2019 will be postponed, or the market demand is not as expected.


The Japanese business publication Nikkei, citing its sources, reports that the Cupertino people turned to Foxconn to remove the reserve from about 15 assembly lines on which iPhone XR should have been assembled. Initially, the Taiwanese collector identified 60 lines for assembling a new Apple machine. However, according to sources, Foxconn used only 45 of the 60 reserved lines.
A similar situation is observed in another partner of the apple company — Pegatron. Sources said that the Taiwanese collector’s leadership has adjusted production expansion plans and is now in talks with Apple.
Some experts claim that today, users prefer the old iPhone models, which are somewhat cheaper than the basic version of the iPhone Xr. This is supported by an increase in production of the iPhone 8 and iPhone 8 Plus.
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