Jefferies downgraded Apple stock to underperform from hold on Monday, with analyst Edison Lee citing supply chain checks that the company has canceled its planned all-glass iPhone due to low production yield. The new price target of $263.66 represents a reduction from Lee's prior target of $285.56, pointing to potential losses of around 16% from where Apple shares last traded. Lee wrote that the all-glass iPhone, which had been expected to launch in September 2027 for the device's 20th anniversary, was a major setback to efforts to bring in higher-priced iPhones amid soaring memory costs. He now sees the forthcoming foldable iPhone, expected in September 2026, as the sole product capable of meaningfully lifting average selling prices and margins, but cautioned that escalating memory costs could push its entry-level price past $2,000. Jefferies also lowered its fiscal 2028 earnings per share forecast for Apple by 2.1%.
Apple Inc.Cancellation of all-glass iPhone due to low yield is a product setback.
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Jefferies Financial Group Inc