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This information may help explain why Apple provided a dim forecast for iPhone sales in the current quarter. Its sources say that Apple has told its manufacturing partners, Foxconn and Pegatron, that it won't be needing the extra production lines it originally expected to tap.

A demonstration of the newly released Apple iPhone XR is seen following the product launch event at the Steve Jobs Theater in Cupertino, California, US September 12, 2018. Indeed, Apple is said to have recently increased its production request from 20m of the handsets this quarter, to 25m.

Wistron, one of Apple's lesser known iPhone assemblers, was reportedly asked to remain on standby for production of the iPhone XR earlier in the year, but will not be receiving any orders to produce more iPhones. That's down 20% to 25% compared to Apple's most optimistic prognosis.

The iPhone XR might be too good to ignore, based on in-depth reviews, battery life ratings, and rigorous durability tests, but it seems that's precisely what a lot of potential buyers are doing.

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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.

Bottom line, it's hard to know whether this report is true or not, but even if it is, it probably doesn't mean anything. And if you liked smaller devices, the iPhone XR is actually the second-worst Apple phone to replace your old phone with - the iPhone XS is narrower, at 2.8 inches versus 2.98. And ultimately, after Apple's continued considerable success, I'm not willing to bet that the company got its customer read wrong this soon after the iPhone's triple launch. So it looks like customers are considering those the true lower-priced alternatives to the XS and XS Max, and not the XR.

"History has shown all kinds of statements made about Apple supply chain and the endless predictions of slowing of iPhone and other Apple product sales have been wrong", said Feinseth, who rates Apple's stock a "strong buy".


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