Jefferies Downgrades Apple After All-Glass iPhone Cancellation

Jefferies downgraded Apple Inc. from hold to underperform on August 10, 2026, lowering its price target to $263.66. Analyst Edison Lee based the move on supply chain checks indicating the company canceled a radical all-glass redesign intended for the iPhone's 20th anniversary in September 2027. The device, which reportedly featured a six-sided glass enclosure and quad-curved display, was shelved due to low production yields.

Lee described the cancellation as a major setback to Apple's strategy of using new form factors to increase average selling prices and margins to offset soaring memory costs. He noted that Apple faces challenges securing advanced node capacity at TSMC, as AI companies have become dominant customers. While a foldable iPhone is still expected to debut in September 2026, Lee warned that memory shortages could push its price above $2,000.

This downgrade occurs as Apple prepares for a leadership transition on September 1, 2026. Tim Cook will step down as CEO to become executive chair, with hardware chief John Ternus assuming the CEO role. The company is expected to unveil the iPhone 18 series and a new AI-powered Siri in September. The Jefferies downgrade contradicts the broader Wall Street consensus, where most analysts maintain buy or strong buy ratings.