Apple cancels production boost for iPhone XR: Nikkei

Apple Inc has told its smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to its new iPhone XR, the Nikkei financial daily reported on Monday.

Apple shares fell nearly 4 percent after the report, which fueled concerns that the iPhone XR, the cheapest of three iPhones Apple unveiled in September, was facing weak demand just days after it hit shelves.

The Nikkei, citing supply chain sources, said Apple had also asked smaller iPhone assembler Wistron (3231.TW) to stand by for rush orders, but that the company will receive no orders for the iPhone XR this season.

“For the Foxconn side, it first prepared nearly 60 assembly lines for Apple’s XR model, but recently uses only around 45 production lines as its top customer said it does not need to manufacture that many by now,” the Nikkei quoted one source as saying.

Apple is considered the biggest customer for Foxconn, formally known as Hon Hai Precision Industry Co.

Apple did not respond to Reuters’ request for comment, while Foxconn and Pegatron each said they would not comment on specific customers or products.

The Nikkei’s report comes days after Cupertino, California-based Apple warned that sales for the crucial holiday quarter would likely miss Wall Street expectations.

“If the reports are accurate, we do find it somewhat disturbing that this would take place so early after the launch of the iPhone XR,” said Angelo Zino, an analyst at CFRA.

“We did not witness any notable order push-outs for the iPhone XR after the initial week of its launch, which is the first time we can say that about a new phone release that took place in the fall,” Zino added.

The decline in Apple’s stock was “way overdone and undeserved,” said Tigress Financial Partners analyst Ivan Feinseth.

“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.”

The Nikkei reported in June that Apple expected to ship about 20 percent fewer iPhones this year compared with the same time last year.

In 2016, Apple introduced a cheaper iPhone called the SE, at a starting price of $399, but failed to lure more customers to buy that product.

Separately, Apple's stock was downgraded for a second time since its earnings report, this time by Rosenblatt Securities, which said it has lowered its expectations for iPhone production and shipments, CNBC reported.

Reuters

Other News

Hanoi approves controlled pilot of two technology projects

Hanoi approves controlled pilot of two technology projects

The two projects involve an intelligent autonomous transportation system developed by Phenikaa-X JSC and a technology for producing mixed rare-earth oxides with a purity of over 95% on a semi-industrial scale developed by the Mining Technology and Construction Consultancy JSC.

Banking industry in AI era: When data becomes competitive advantage

Banking industry in AI era: When data becomes competitive advantage

In just a few years, AI has evolved from an experimental technology into an “assistant” for many banks, supporting everything from customer service, credit approval, and fraud detection to risk management. However, as the technological gap between institutions narrows, a new question is emerging: What will determine banks' competitive advantage in the AI era?

Bac Ninh considers establishing AI centre of excellence

Bac Ninh considers establishing AI centre of excellence

A meeting has been held in Bac Ninh to discuss potential cooperation with Plug and Play in developing the northern province’s innovation ecosystem and establishing an artificial intelligence (AI) centre of excellence, with Standing Vice Chairman of the provincial People’s Committee Mai Son receiving a delegation from the global innovation platform.

Hanoi allows 24-month trial of autonomous vehicles at Hoa Lac

Hanoi allows 24-month trial of autonomous vehicles at Hoa Lac

The project aims to assess the safety, reliability and readiness of autonomous vehicles under real traffic conditions, as well as the effectiveness of autonomous public transport and compatibility with existing systems. Its results will contribute to developing technical standards, operating procedures and management models suited to Hanoi’s traffic conditions.

Singapore's experience suggests solutions to Vietnam's human resources challenge in AI era

Singapore's experience suggests solutions to Vietnam's human resources challenge in AI era

As Vietnam accelerates digital transformation and high-tech development, Singapore’s experience and the engagement of global technology companies demonstrate that human resources preparation must stay ahead of the curve. The ability to filter knowledge, collaborate, innovate and effectively use AI will increasingly become essential to helping workers adapt to a changing labour market and strengthening the competitiveness of Vietnam’s economy in the new era.

Protecting national security amid digital transformation, cyberspace

Protecting national security amid digital transformation, cyberspace

Cybersecurity, information security and data security risks must be identified and addressed early and from afar, with appropriate defensive measures ready to neutralise threats and protect national interests in cyberspace, said Lieutenant General Le Xuan Minh, Director of the Ministry of Public Security’s Department of Cybersecurity and Hi-tech Crime Prevention (A05).

Mekong Delta launches first robotics, AI research institute

Mekong Delta launches first robotics, AI research institute

Dr. Nguyen Van Quang, Rector of Nam Can Tho University, said the university is developing a value chain covering training, research, technology development, testing, technology transfer and commercialisation. The model is designed to link research more closely with practical needs, ensuring that technologies generate products and products create value for society.

Vietnam positioned to harness AI wave, World Bank report says

Vietnam positioned to harness AI wave, World Bank report says

The WB report identifies Vietnam as one of the few economies outside the European Union (EU) to have adopted a comprehensive AI regulatory framework as early as 2025. Vietnam applies a risk-tiered approach similar to that of the EU AI Act, imposing different obligations depending on whether an AI system poses “unacceptable,” “high,” “low” or “minimal” risks. The approach is viewed as a strategic step towards ensuring safe and transparent AI governance.

AI offers both opportunities, challenges for Vietnam's growth

AI offers both opportunities, challenges for Vietnam's growth

Dr. Ho Duc Thang, a full-time member of the National Assembly’s Committee for Cultural and Educational, said productivity is the key to sustaining double-digit economic growth, and AI has greater potential to improve productivity than any previous technology.

Top leader unveils people-centred vision for new development model

Top leader unveils people-centred vision for new development model

Vietnam's growth model, long fueled by low-cost labour, resource extraction, contract manufacturing, expanded investment, and capital accumulation, has run out of road. The country now needs a sweeping reform agenda to shift from extensive growth to a model driven by productivity, knowledge, science and technology, innovation, and digital transformation.