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Apple (AAPL) Needs to Cut iPhone Prices in China, Says Analyst | TheStreet

Apple Inc. (AAPL – Get Report)  can and should cut iPhone prices in China, according to Wedbush analyst Daniel Ives.

“We expect more significant price cuts on XR over the coming months,” Ives said in a note out Monday morning, referring to the lowest-priced new iPhone. “Apple is facing a ‘code red’ situation in China and the right pricing strategy around XR and future versions will be key,” he added.

Apple’s stock fell 1.50% to $150 a share on Monday. The broader market was also down, with the tech-heavy Nasdaq down 0.94%.

Ives, who has a $200 price target on Apple, told TheStreet in an email that a China iPhone price cut “is key to the Street’s bull thesis” and that Apple should “take their medicine with lower prices.”

There are two main reasons Apple should cut prices in the country, according to Ives.

The first is that there is considerable smartphone competition in China. “With lower-priced competition from all directions with Huawei and Xiaomi front and center, Apple needs to make sure that over the next few quarters they do not lose any current iPhone customers,” Ives said.

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Apple (AAPL) Needs to Cut iPhone Prices in China, Says Analyst – TheStreet.