Jefferies Downgrades Apple After All-Glass iPhone Cancellation

Jefferies downgraded Apple Inc. from hold to underperform and lowered its price target to $263.66. The move follows supply chain checks indicating the company canceled plans for an all-glass iPhone, a project that was intended to debut on September 27.

Analyst Edison Lee attributed the cancellation to low yield, describing the move as a major setback to Apple's strategy of increasing average selling prices and margins through new form factors. Lee noted that the company had planned to extend all-glass features to future iPhone Pro and Pro Max models to offset soaring memory costs.

While a foldable iPhone is still expected to launch in September 2026, Lee warned that AI-driven memory costs could push the price of that device above $2,000, potentially limiting its market appeal. This downgrade stands in contrast to the broader Wall Street consensus, where most analysts maintain buy or strong buy ratings for the company.