Jefferies Downgrades Apple to Underperform on Canceled All-Glass iPhone

Jefferies downgraded Apple stock to underperform on Monday, citing supply chain checks that indicate the company has canceled its planned all-glass iPhone model due to low production yields. The downgrade, issued by analyst Edison Lee, cuts Apple's price target to $263.66 from a previous $285.56, suggesting potential downside of roughly 16% from the stock's recent close.

The canceled device was a special model intended to mark the iPhone's 20th anniversary, with a planned launch in September 2027 and an estimated retail price of around $2,060. Lee described the cancellation as a "major setback to efforts to bring in higher-priced iPhones amid soaring memory costs." The all-glass design had been viewed as a key vehicle for Apple to raise average selling prices and margins, with plans to eventually extend the construction to future iPhone Pro and Pro Max models.

Without this product, Lee argued, Apple loses a critical lever for defending margins against rising memory costs driven by AI demand. He noted that the company's forthcoming foldable iPhone, expected in September 2026, is now the sole product capable of meaningfully lifting average selling prices. However, Lee cautioned...