After The Wall Street Journal reported that Apple Inc (AAPL) was considering raising prices on its new iPhones this fall, Joe Terranova said on CNBC yesterday that he thinks the tech giant should pull the trigger on the move.

Terranova, the Senior Managing Director for Virtus Investment Partners, frequently appears on CNBC.Analyst Highlights ‘Distrubing and Dissappointing” Development for Apple (AAPL)

A wide view of an Apple store, showing the range of products the company offers.

Why Terranova Thinks That Apple Inc (AAPL) Should Hike iPhone Prices

Apple Inc (AAPL) has "pricing power," and the company should follow in the footsteps of Netflix (NFLX) and Chipotle (CMG) which frequently hike their prices, Terranova said.

"I don't think (consumers) are going to flinch at all if they actually...raise the prices, in particular on the high end (iPhones)," the well-known investor added.

Calling iPhones " a consumer staple," Terranova suggested that consumers would continue to buy the devices even if their prices rose by 20%.

CNBC Scott Wapner, however, pushed back against Terranova's theory, suggesting that the company may not have that much pricing power because its "AI offerings (have been) subpar."

The Recent Price Action of Apple Inc (AAPL) Stock

In the last month, the shares have gained 4.3%, while they have fallen 9.5% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.

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