×
You will be redirected back to your article in seconds

Apple Stock Slides to Three-Month Low After Report of iPhone XR Production Cutback

Apple shares sank as much as 4.5% Monday following a report that the tech giant has scaled back production orders for its new entry-level iPhone XR model.

The company’s stock drop — pushing Apple’s market cap below $1 trillion — comes after shares closed down 6.6% last Friday, to $207.48 per share, as investors reacted to the September quarter earnings results with lower iPhone unit sales and weaker-than-expected December quarter revenue guidance. [UPDATE: Apple stock closed down 2.8% on Monday, to $201.59 per share, the lowest level since Aug. 1. Shares are up 20% year to date.]

According to a report Monday by Japan’s Nikkei, Apple “signaled disappointing demand” for the iPhone XR by informing manufacturing partners Foxconn and Pegatron to halt plans for additional production lines of the smartphone targeted at price-conscious consumers. That suggested a 20%-25% reduced forecast in unit sales, per the Nikkei report, which cited anonymous sources.

The drop in Apple’s shares since last Thursday has cut its market cap by more than $100 billion. Even so, the company still has the biggest market valuation of any company in the world.

The iPhone XR — priced starting at $749 — is meant to replace the iPhone 8 introduced a year ago. The XR model borrows its looks from the iPhone X and features an all-screen glass and aluminum design with a 6.1-inch Liquid Retina LCD display.

The XR model went on sale on Friday, Oct. 26, after Apple unveiled the new model along with the pricier iPhone XS and XS Max in September. It’s available in six different colors: white, black, blue, coral, yellow, and red.

In discussing the September quarter results, Apple CFO Luca Maestri said the company will stop reporting unit sales, which Wall Street has long used as a barometer to measure the health of its hardware businesses.

Through the 2018 holiday shopping season, Apple is reviewing iPhone demand weekly “to adjust orders quickly in response to the market,” according to the Nikkei report.

More Digital

  • Apple Announces Gaming Subscription Service

    Apple Announces Gaming Subscription Service Apple Arcade

    Apple detailed its long-rumored gaming subscription service during a special event it held in Cupertino, California Monday. Apple Arcade is the world’s first game subscription service for mobile, desktop and living room, the company said. With a single subscription, you get access to more than 100 new and exclusive games. The games won’t be on [...]

  • Apple News Announcement

    Apple Unveils $9.99 News Subscription Service Dubbed Apple News+

    Apple unveiled a news subscription service called Apple News+ at its services event in Cupertino, Calif. Monday. The $9.99 service gives paying subscribers access to over 300 magazines as well as select newspapers and premium digital news services. “We believe in the power of journalism and the impact it will have on your lives,” said [...]

  • Katie Drummond - Vice Digital

    Vice Names Katie Drummond SVP of Digital

    Katie Drummond, who has worked as an editor in digital media and publishing for a decade, joined Vice Media as senior vice president of Vice Digital. Drummond comes on board to take over many of the duties of Ciel Hunter, who left Vice in January as global head of content for Vice Digital after more [...]

  • Apple Event: How to Watch Live-Stream

    How to Live-Stream Today's Apple Event

    Monday is the coming-out party for Apple’s Hollywood ambitions: After years of trademark secrecy about its plans to stream into video entertainment, the tech giant is set to pull back the curtain at a media event. The live program kicks off at 10 a.m. PT / 1 p.m. ET, on Monday, March 25, from the [...]

  • Google Stadia is a Net Neutrality

    Google Stadia is a Net Neutrality Nightmare

    At the Game Developers Conference (GDC) this year, Google announced that it has taken up the long and ever-lengthening dream of the video game streaming service. Meant to replace the hefty, pricey, altogether confounding experience of buying and using various gaming hardware, Google Stadia will run video games on Google’s own hardware in a server [...]

  • crunchyroll logo

    Crunchyroll Raises Subscription Price to $7.99

    AT&T-owned anime subscription video service Crunchyroll is raising its monthly subscription price from $6.95 to $7.99 a month, it announced in an email to members Friday. It’s the service’s first price increase ever, according to a spokesperson. The new pricing will go into effect on May 1 for new subscribers, while existing members will see [...]

  • StyleHaul

    StyleHaul Shuts Down U.S. Operations, Lays Off About 65 Employees

    The axe is falling on StyleHaul: The fashion, beauty and lifestyle digital media and marketing company owned by RTL Group is shuttering U.S. operations, resulting the layoff of around 65 employees. StyleHaul offices in L.A., with about 55 employees, and in New York City, with around 10 staffers, are closing. RTL said StyleHaul’s U.K. operations, [...]

More From Our Brands

Access exclusive content