14 DAY TRIAL // Apple is making production adjustments for the iPhone XR model, as the company expects record sales when the device hit the shelves next month.
The 6.1-inch LCD iPhone is manufactured by Pegatron and Foxconn, but according to a report from Digitimes, Apple has recently increased the production share of the latter.
Pegatron was previously in charge of between 50 and 60 percent of the iPhone XR production, while Foxconn was supposed to build only some 30 percent of the devices.
But due to production struggles experienced by Pegatron, Apple wants Foxconn to build more units in order to be sure that its supply is large enough for the October launch.
The cited source says Pegatron has encountered issues like a low yield rate and shortage of workers at China production plants, so its manufacturing share has dropped to below 30 percent. More adjustments could take place in the coming weeks if Pegatron addresses these problems.
Display production challenges
In addition, Japan Display (JDI) has its very own production struggles as well due to the LCD panels that it supplies for the new iPhone XR. The manufacturing process at JDI plants has not been steady, the source adds.
iPhone XR is the cheapest iPhone model launching this year, with US pricing to start at $749. The device, however, comes with several cost-saving measures, and instead of an OLED screen, it uses an LCD panel. Both iPhone XS and iPhone XS Max, which are available at a higher price, use OLED.
Additionally, iPhone XR doesn’t feature a dual-camera system, but only a single lens unit, while 3D Touch has also been removed. It will go up on pre-order on October 19, while shipments will kick off a week later on October 26.
iPhone XR is expected to account for more than 50 percent of all 2018 iPhone sales, contributing to a possible supercycle and generate upgrades from owners of older iPhones.