Due to unsatisfactory display and price people are not willing to upgrade to iPhone XR, and also they like to have iPhone Xs by investing 20% more.
Apple has ordered its contracted manufacturer Foxconn, to reduce the production of iPhone XR by up to 25 percent. Now, the OEM will produce 100,000 fewer units than they decided earlier. Foxconn has also reduced the number of assembly lines which is dedicated to iPhone XR from 60 to 45 following this order.
People are speculating that the demand for $749 iPhone is not meeting the expectations of Apple. And that’s why Apple reduced the production.
But according to a research note from analyst Jun Zhang (pointed out by Philip Elmer-DeWitt’s Apple 3.0), there may have been some quality control issues involving the iPhone XR’s printed circuit boards that led to a reduction in production output.
Zhang’s note reads in part:
We also believe component pull-ins are slowing down this week. We believe some Printed Circuit Board (PCB) supplier shipments of HDI boards were quickly dropped this week. This may be attributable to quality issues from Skyworks PAs. We believe this potential round of iPhone XR production cuts by Apple may be attributable to the recently found PA quality issues.
And yes, this is more than likely the real reason behind reduced production.