Apple will have to further slash the cost of the iPhone XR if it doesn’t want to lose loyal customers.
That’s according to a new report from tech analysts Wedbush, which says that Apple’s recent decision to drop prices of the iPhone XR and iPhone 8 in China do not go far enough.
The report says that Wedbush, “...expect[s] more significant price cuts on [iPhone] XR over the coming months,” adding that while lower costs may hit Apple’s bottom line, it’s a risk worth taking as failing to do so may cause Apple’s installed base to look at cheaper Android handsets.
Apple has yet to cut the cost of the iPhone XR outside of Asia. Tim Cook, Apple’s CEO, last week dismissed claims that the device was a failure, but did admit that the company needed to sell more devices.
Apple issued a shock profit warning at the start of the year, blaming economic uncertainty in China.
However, high prices and low demand for new iPhones also appear to be a major factor in its current struggles.