×

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.

Popular on Variety

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-Coronavirus

    Apple Warns of Sales Shortfall for March Quarter, Blaming Coronavirus Outbreak

    Apple said the spread of the coronavirus in China has disrupted iPhone manufacturing and driven down sales in the country. As a result, the tech giant said it now expects to undershoot the revenue guidance it previously provided, of between $63.0 billion and $67.0 billion its fiscal 2020 second quarter (which ends March 28). “Work [...]

  • Jeff Bezos

    Jeff Bezos Forms $10 Billion Fund to Fight Climate Change

    Multi-billionaire Jeff Bezos, the world’s wealthiest person, announced a $10 billion fund to invest in projects that will combat the alarming trend of climate change. The Amazon founder and CEO announced the formation of the Bezos Earth Fund in an Instagram post Monday (Feb. 17).⁣⁣⁣ According to Bezos, the fund will begin issuing grants this [...]

  • Jake Paul

    YouTuber Jake Paul Launches Entrepreneur How-To Platform, Financial Freedom Movement

    YouTuber Jake Paul wants you to be financially free, for $19.99 a month.  At a rally on Saturday, the content creator — along with influencer friends and around 50 teenage and tween-age fans, some chaperoned by parents — launched the Financial Freedom Movement (FFM) in partnership with GenZ Holdings Inc., a Los Angeles-based brand development [...]

  • HQ Trivia

    HQ Trivia Live Game App Shuts Down

    After a two and a half years, HQ Trivia — the live game-show app that gave away cash prizes to winners — is shutting down. HQ Trivia’s move to shut its doors was first reported by CNN. The company is laying off its 25 full-time staffers, according to the report. In a tweet Friday, CEO [...]

  • Golden Mics - The Podcast Academy

    The Oscars of Podcasting? First 'Golden Mics' Awards to Debut in 2021

    The burgeoning podcast biz is looking for its own version of the Oscars, Emmys and Grammys. On Friday, a group of podcast publishers and producers including Spotify, NPR, PRX, Sony Music Entertainment and Wondery announced the formation of the Podcast Academy, a membership-based organization dedicated to promoting the medium. As part of its charter, the [...]

More From Our Brands

Access exclusive content