It looks like the iPhone XR is not doing as well as analysts and Apple had expected. The company is a key assembler for iPhone XR, and it has also secured orders for iPhone XS Max, added the sources.
Apple has taken some questionable decisions over the past years that have left us without the audio jack, Touch ID sensor in its devices or it has throttled the speed of their older iPhone models to "conserve the battery and make them last longer".
The Nikkei, citing supply chain sources, said Apple had also asked smaller iPhone assembler Wistron Corp to stand by for rush orders, but the firm would receive no planned orders for the iPhone XR this season.
Last week, Apple did warn that sales for this holiday quarter are likely to miss the expectations of Wall Street. That's down 20% to 25% compared to Apple's most optimistic prognosis.More news: Seahawks grades versus Chargers in unsettling loss
At the lowest level of the day, Apple shares have registered a loss of 10.8 per cent in two days. Apple was down 0.5% in premarket USA trading on Tuesday.
Apple shares fell almost 4 percent after a report signaled that its new, lower-priced iPhone XR might not be selling as well as expected.
Indeed, it was widely hailed as the unexpected hit of Apple's 2018 iPhone event. Similarly, with iPhones no longer launching on a set schedule these days (with last year's iPhone X launching in November and the iPhone XR launching in late October of this year), a random 12 week snapshot of iPhone sales is not almost as instructive as it was years ago.
This information may help explain why Apple provided a dim forecast for iPhone sales in the current quarter. While other, pre-launch supply-chain reports had even suggested that at one point, Apple was preparing to boost production of the mid-range handset by as much as 50 percent based exclusively on higher-than-expected sales outlook.
Apple closed just above $200 on Monday amid a wider tech sell-off that has seen other FAANG stocks - Facebook, Apple, Amazon, Netflix, and Google - fall in recent weeks.