Apple Shifts More iPhone XR Orders To Foxconn Ahead Of Release

When Apple showcased the iPhone XS and iPhone XS Max during its Sept. 12 event, it also introduced the less-expensive iPhone XR. Unfortunately, unlike the flagship series, the XR variant did not launch nine days later. Instead, the Cupertino giant scheduled the release of the iPhone XR to happen on Oct. 23.

Ahead of the phone’s release, Apple has reportedly decided to shift more orders of the device to Foxconn Electronics from Pegatron. Digitimes learned Tuesday from the Chinese-language news outlet Economic Daily News that Tim Cook’s company came up with this decision after noticing the slowing down of Pegatron’s production due to capacity constraints and delays in key components shipments.

Apple originally gave Pegatron more orders for the LCD-based iPhone XR. Pegatron formerly landed 50-60 percent of the total orders, while Foxconn was only granted around 30 percent. Seeing Pegatron’s struggle to fulfil the orders, Apple has now decided to lower the company’s percentage to below 30 percent. On the other hand, Foxconn’s orders have substantially increased.

The Chinese report also found out through sources that Pegatron was having a hard time realizing Apple’s original orders because of lower-than-expected yield rate as well as shortages in the number of its factory workers in China. Furthermore, the supply of LCD panels from Japan Display hasn’t been steady.

Apple has yet to comment on the report. Meanwhile, both Foxconn and Pegatron declined to confirm the leaked information about the iPhone XR production issues. Apple is set to open pre-orders for the iPhone XR on Oct. 19 and start shipping the handset on Oct. 23. Hopefully, the shift could help satisfy the initial demand for the less-expense, current-generation iPhone.

The news comes a day after MacRumors discovered from analyst Ming-Chi Kuo that demand for the iPhone XS Max is “better than expected” such that the 6.5-inch OLED model is outselling the 5.8-inch OLED model called iPhone XS. Kuo came up with this statement after observing the launch-weekend performance of the new Apple products.

“We have determined that the demand for XS Max is better than expected (3-4 times that of XS). The gold and space-grey colors are significantly more popular than the silver,” Kuo noted in his latest research note. “256GB is the most popular, and 512GB is subject to a serious shortage because only Samsung can currently ship NAND Flash well. We are positive that XS Max shipments will grow steadily in 4Q18 thanks to demand from Asia market and the gift season.”