Jefferies downgraded Apple to Underperform from Hold and cut its price target to $263.66 from $285.56, implying roughly 18% downside, citing a reportedly canceled premium iPhone design that could weaken Apple's ability to raise prices amid rising component costs. Analyst Edison Lee said supply-chain checks indicate Apple has scrapped a rumored all-glass iPhone planned for 2027 due to manufacturing yield problems, calling it a major setback to Apple's premiumization strategy. Jefferies cut its fiscal 2028 and 2029 earnings-per-share estimates by 2.1% and 3.4%, respectively. The bearish call comes despite strong iPhone momentum, with fiscal Q3 iPhone revenue up 22% to $54.25 billion and total revenue up 16% to $109.4 billion. Jefferies also flagged higher trade-in values, up about 5% in the U.S. and 2% in Europe, which could pull forward demand.
Apple Inc.Canceled premium iPhone design due to manufacturing yield problems weakens premiumization strategy and pricing power.
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Jefferies Financial Group IncJefferies downgrade and price target cut reflect analyst action, but the firm itself is not directly impacted by the news.
