Apple's lower-priced XR model was expected to be popular over the holiday season, luring owners of older iPhones to upgrade.
Monday's fall came after Apple told its smartphone assemblers Foxconn and Pegatron to halt plans for additional production lines dedicated to the iPhone XR which hit shelves in October, Reuters reported citing a Nikkei report.
The Nikkei report comes days after Cupertino, Calif. -based Apple warned in its quarterly earnings report that sales for the crucial holiday quarter would likely miss Wall Street expectations. While the iPhone XS and iPhone XS Max are undoubtedly powerful and, with their OLED screens and dual cameras, capable, they're also expensive.
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.
"We caution investors not to lose sight of the massive metamorphosis on the horizon at Apple being led by the services business", Ives wrote in a research report published Monday.
Despite Apple hinting at a lesser performance deterioration compared to the older models, the feature will eventually tune down the CPU' performance to prevent the device from abruptly switching off.
It may seem unusual to see an iPhone XS review on Android Authority, but it's hard to deny the iPhone's influence on the directions Android's gone over the years.
It's too early to tell if the iPhone XR will have a similar fate as the iPhone 5C.
If this all sounds familiar, you're probably thinking of the Apple iPhone 5C, which Apple launched five years ago.
This information may help explain why Apple provided a dim forecast for iPhone sales in the current quarter.
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