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iPhone Price Cuts on the Way, Suggests Analyst, Along With a Major Acquisition for Streaming Service

iPhone Price Cuts on the Way, Suggests Analyst, Along With a Major Acquisition for Streaming Service

By Gaurav Shukla | Updated: 15 January 2019 20:00 IST

iPhone XR is the most affordable iPhone out of the latest crop of phones from Apple

Highlights

Apple resellers in China are offering discounts on many iPhone models
Apple is expected to unveil a new video streaming service this year
Analyst claims Apple is facing a “code red” situation in China

If an analyst is to be believed, Apple is expected to announce significant price cuts for the iPhone XR in the Chinese market. The company in November had reduced the price of the iPhone XR in Japan and many Apple resellers started offering heavy discounts on a number of iPhone models in China this week. Additionally, the analyst claims the Cupertino-based company may have to go the acquisition route to accelerate its video streaming service launch. The iPhone maker is rumoured to unveil the said streaming service sometime this year.

According to Daniel Ives, an analyst with Wedbush Securities, Apple needs to course-correct on the pricing front and the company is expected to announce “significant price cuts” for the iPhone XR model in the coming months to get the iPhone sales on track. Major retailers in China have already announced price cuts of their own last week, and NTT Docomo made a similar move back in November itself.

"As we have discussed with investors, it has been Apple's pricing hubris on iPhone XR that was the major factor in the company's December-quarter earnings debacle," Ives said.

He noted that the iPhone maker is facing a “code red” situation in China and in order to avoid losing more customers to the competition, the company will have to reduce the price of iPhone XR, even if it means losing the perception of being a luxury brand.

“Apple needs to make sure that over the next few quarters they do not lose any current iPhone customers and thus speaks to the more significant price reductions on the way,” he added.

Additionally, Ives claims that with increasing pressure from the slowing iPhone sales, Apple's services division needs to step up and pick up the slack. Which means the company may have to accelerate the launch of its much-awaited video streaming service. The company CEO Tim Cook had recently revealed in an interview with CNBC that the company is planning to launch several new services this year. One of these services is believed to be the streaming platform. However, Wedbush Securities estimates that the Apple's streaming service is on track for a launch next year and the company is playing catch up with already established players like Netflix, Amazon, and Hulu. Daniel Ives says that a major acquisition is the only way to make sure that Apple's streaming service is beefed up when it debuts.

“While acquisitions have not been in Apple's core DNA, the clock has struck midnight for Cupertino in our opinion and building content organically is a slow and arduous path, which highlights the clear need for Apple to do larger, strategic M&A around content over the coming year to “double down” and drive the services flywheel,” Ives noted.

He remarks that A24, Lionsgate, and Sony Pictures are some “high probability” acquisition options for the company.

Apple iPhone XR

REVIEW
KEY SPECS
NEWS
Variants

Design
Display
Software
Performance
Battery Life
Camera
Value for Money

Good
Best-in-class performance
Excellent cameras
Dual SIM is finally an option
Great battery life
Regular, timely software updates

Bad
Low-resolution display
Dual SIM support is limited
First-party apps not great in India
Fast charger not bundled

Read detailed Apple iPhone XR review

Display 6.10-inch

Processor Apple A12 Bionic

Front Camera 7-megapixel

Rear Camera 12-megapixel

RAM 3GB

Storage 64GB

Battery Capacity 2942mAh

OS iOS 12

Resolution 828x1792 pixels

More Apple mobiles Apple mobiles price in India

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