That is the view of former Liverpool defender Steve Nicol, who says that it is defensively where the struggles lie.
Ceballos has joined on a season-long loan from La Liga giants Real Madrid and will fight with the likes of Mesut Ozil for a starting berth under Unai Emery.
The Spaniard joined on the same day teenage defender William Saliba was also signed from Saint-Etienne for £27m – but he has been loaned back to the Ligue 1 club for the season.
Those two followed the arrival of young Brazilian striker Gabriel Martinelli for around £6m.
And Nicol does not believe the right areas are being targeted by the north London side in the transfer market.
And Nicol thinks improving the defence is far more important than bringing in an attacking midfielder like Ceballos.
“I’ve got to say, when I’m looking at Arsenal, I’m thinking ‘right, they need to strengthen, no question’,” Nicol said.
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“When you’ve already got Mesut Ozil, why are you going out and getting Dani Ceballos?”
“But their problems are all defensive, at the back and in the middle of the park.
“And when you’ve already got Mesut Ozil, why are you going out and getting Dani Ceballos?
“You certainly can’t play both of them in the same team.
“So that means you’re going to play him ahead of Ozil?
“He’s a good player yes but as I said, Arsenal’s problems aren’t going forward.
“They score goals, they excite the fans, but they can’t defend.
“Dani Ceballos doesn’t help them in that department.”
The Gunners are still in the hunt for Celtic left-back Kieran Tierney, while they are also interested in Crystal Palace star Wilfried Zaha.