Apple shares fell almost 4 per cent on Monday after the report from the Nikkei financial daily, which fuelled concerns that the iPhone XR - the cheapest of three iPhones unveiled in September - was facing weak demand just days after it hit shelves. This has led the company to cancel a so called "production boost" for the model.
Last year, Apple had to face one of the most controversial year endings when the infamous performance throttling feature was discovered to bog down older iPhones.
The iPhone XR, meanwhile, is having its demand outlook cut by around 20% to 25%, according to the Nikkei source.
"For the Foxconn side, it first prepared almost 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 a source as saying. And at a starting price of $749, it's the most affordable new iPhone on store shelves. According to the report, demand is still strong for those models and Apple not expects to produce 25 million iPhone 8 and iPhone 8 Plus units during the fourth quarter.
A bunch of Apple's other Taiwanese suppliers fell sharply, including camera lens-maker Largan Precision Co Ltd, which was down more than 7 per cent, and Flexium Interconnect Inc, which fell 6 per cent.
Apple said it would stop providing unit sales for iPhones, iPads, and Macs in fiscal 2019.
Apple's iPhone XR, which boasts the iPhone X's edge-to-edge display, albeit using older LCD pixels instead of the X's high-resolution OLED screen, was widely expected to fuel a massive wave of upgrades from users of the iPhone 6S or earlier models.
This information may help explain why Apple provided a dim forecast for iPhone sales in the current quarter.