Analyst: iPhone will further cut prices to retain users

We have seen that the iPhone has a considerable price cut in China and Japan, and at least one analyst believes that the iPhone will further cut prices in the future. A report last November said that Apple plans to cut the price of the iPhone XR in Japan, and the report quickly confirmed that Apple offered a discount of about $100 to the iPhone XR later that month.

Last week, a number of iPhones also received price cuts on the domestic e-commerce platform, and the price cuts for the iPhone 8, iPhone 8 Plus and iPhone XR were about 20%.

Earlier this month, Apple warned that the company's first quarter 2019 earnings will be $5 billion to $9 billion lower than originally projected. The resulting impact has caused Apple's share price to fall further, and many analysts have lowered Apple's target price. Wedbush analysts said on Monday that the iPhone will further cut prices.

The company said that the Chinese market is critical to Apple's future, which is why we expect the iPhone XR to see a sharper price cut in the coming months. Although some investors will worry that the iPhone price cut will affect Apple's revenue in the next few quarters, and the image of the iPhone's high-end smartphones will be damaged, but to say that all this is related to Apple's user base.

The report pointed out that Apple needs to implement the correct pricing strategy around the iPhone XR and future versions in the Chinese market. In the face of competition between domestic brands such as Huawei and Xiaomi, Apple needs to avoid losing existing iPhone users in the next few seasons, so there will be more substantial price cuts in the future.

At the same time, Wedbush believes that, given the need for more services to fill the gap, Apple may accelerate its long-awaited streaming video service, and large-scale acquisitions may be the only realistic way.