Thanks in part to the release of exciting new models like the iPhone XS and XS Max during the third quarter, Apple is still growing its market share in the USA according to newly released data from Kantar Worldpanel. Indeed, Apple is said to have recently increased its production request from 20m of the handsets this quarter, to 25m. This has led the company to cancel a so called "production boost" for the model.
The iPhone XR, meanwhile, is having its demand outlook cut by around 20% to 25%, according to the Nikkei source.
Indeed, it was widely hailed as the unexpected hit of Apple's 2018 iPhone event. At Foxconn, only 45 production lines of the planned 60 are now being used.
Pegatron the Taiwanese manufacturer company has also stopped the production plans of the iPhone XR. While the iPhone XS and iPhone XS Max are undoubtedly powerful and, with their OLED screens and dual cameras, capable, they're also expensive.
In contrast, the iPhone XR's $750 starting price made it seem a relative bargain.
Suppliers of the 8 and 8 Plus have received a combined order of around 5 million more units.
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.
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. "Last year, Apple gave rush orders for the iPhone 7 series following the launches of the iPhone 8 series and premium iPhone X", the Japanese financial newspaper said. "The moves to add orders for year-old iPhone models while suspending extra production for the latest product illustrates Apple's lack of innovation and inability to energize consumers with such a pricing strategy".