Apple Faces Code Red in China, More iPhone Price Cuts Expected, Says Analyst
Apple has recently discounted 2017 and 2018 iPhone models in China in an attempt to deal with the slow sales in the country, and now analysts believe this is just the beginning of a longer series of price cuts.
An investor note sent by Wedbush to clients and seen by 9to5mac suggests Apple has no other option in the long term given the increasing competition from local companies like Huawei and Xiaomi.
Furthermore, the analysts emphasize that Apple does not afford to lose more users in China.
“In our opinion Apple is facing a “code red” situation in China and the right pricing strategy around XR and future versions will be key to putting a ring fence around the core installed base in the region,” the analysts said.
“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 cust… (read more)