The iPhone XR, the cheapest of three iPhones Apple unveiled in September is facing weak demand just days after it hit the shelves.
The Nikkei, citing supply chain sources, said Apple had also asked smaller iPhone assembler Wistron to stand by for rush orders, but that the company will receive no orders for the iPhone XR this season.
“For the Foxconn side, it first prepared nearly 60 assembly lines for Apple’s XR model, but recently uses only around 45 production lines as its top customer said it does not need to manufacture that many by now”, the Nikkei quoted one source as saying.
The Nikkei’s report comes days after Cupertino, California-based Apple warned that sales for the crucial holiday quarter would miss Wall Street expectations.
The Nikkei reported in June that Apple expected to ship about 20 percent fewer iPhones this year compared with the same time last year.
In 2016, Apple introduced a cheaper iPhone called the SE, at a starting price of $399, but did not lure more customers to buy that product.
Separately, Apple's stock was downgraded for a second time since its earnings report, this time by Rosenblatt Securities, which said it has lowered its expectations for iPhone production and shipments.