It's possible, for instance, that overall iPhone demand is down and Apple is reducing its production costs.
Apple has informed its assemblers Foxconn and Pegatron to halt the production line of the smartphone. That sent the smartphone manufacturer's suppliers down across Asia, while Apple's stock looks set for further declines - falling 0.5% in premarket trading on Tuesday morning.
Wistron, one of Apple's lesser known iPhone assemblers, was reportedly asked to remain on standby for production of the iPhone XR earlier in the year, but will not be receiving any orders to produce more iPhones.
It seems that Apple has realised that the demand of the newly launched iPhone XR is not up to the mark.
The Nikkei's report comes days after Cupertino, California-based Apple warned that sales for the crucial holiday quarter would likely miss Wall Street expectations.
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Apple did not respond to Reuters' request for comment, while Foxconn and Pegatron each said they would not comment on specific customers or products.
Yet Nikkei is also reporting that while Apple may be choosing not to initiate extra reserved production lines for the iPhone XR, the company is boosting its production of the iPhone 8 and iPhone 8 Plus this quarter by an extra 5 million units.
At Rs 76,900, the iPhone XR is still on the expensive side, and maybe some cashback, EMI and buyback offers could help Apple sell significant number of units.
The iPhone XR - priced starting at $749 - is meant to replace the iPhone 8 introduced a year ago.
Apple announced it has taken $62.9bn (£48.2bn) in revenue for Q4 2018, an increase of 20 per cent ($52.5m) year-on-year.
Taiwanese assembler Pegatron Corp fell almost 4 per cent and rival Hon Hai Precision Industry Co Ltd (Foxconn) fell 2.5 per cent. Apple is widely considered the biggest customer for Foxconn. Originally Apple had ordered 20 million of the last generation model but has since raised the order to 25 million.
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