What does the future hold for XR

iPhone XR: Nikkei reports dip in orders

Peter Müller

The iPhone XR is set to be a hit this season, but Nikkei claims to have found out that expectations will not be exceeded. But the report is not very credible.

Almost every year the same story - Apple is allegedly reducing the order volume for manufacturers in Asia and the current iPhone is quickly declared a slow-moving company. That was already the case with the iPhone X, now it is the case with the iPhone XR. What the Japanese business magazine "Nikkei" reports, however, climbs to new heights, because this time Apple is not reducing orders, but is allegedly encouraging Foxconn and Pegatron not to expand their production capacities as planned. If that is true, it would at most be a sign that Apple is not making any unplanned use of the capacities made available. That says little or nothing about the sales success of the iPhone XR. Because Apple's supply chain is quite complex, and from individual order changes it is hardly possible to draw conclusions about the overall situation. As the sources report, the planning at Foxconn evidently missed the actual need, one gets by with production lines and does not have to expand to 60 planned ones. Smaller manufacturers such as Wistron also had additional capacities available for iPhone XR production, but these were not needed. Instead, Apple would build more iPhone 8 and 8 Plus than originally estimated. The price of the Apple share fell in the pre-market trading. Neither Apple nor the companies involved wanted to comment on the story. Doubts about the Nikkei report are certainly justified, however, as Philip Elmer-DeWitt points out, Nikkei has been wrong several times in the past with its rumors about production declines at Apple, which are based on vague samples.

Apple is growing in the USA

Apple will no longer give any sales figures for its products in the future, only the sales generated with them. Market researchers will therefore have to step in. Kantar World Panel now gives some figures for the third quarter, claiming to have established a "healthy" sales start "for the iPhone XS and XS Max in the US, along with a" strong momentum "for the iPhone 8 and 8 Plus ensured that the market share of iOS in the US has increased by 5 percent. The iPhone XR, which was released outside of the period under review, will contribute to a further increase. In Europe, things are a little different, where customers keep their smartphones two months longer than in 2016, new purchases should therefore be tempted by special innovations. Huawei is doing it right with its P20 and has established itself as the second brand behind Samsung.