Apple downgraded after all-glass iPhone canceled

Jefferies downgraded Apple to Underperform after canceling the all-glass iPhone and lowering sales forecasts. The price target dropped, shares fell, and analyst sentiment turned cautious.

Jefferies has downgraded Apple to Underperform, lowering its price target due to concerns about future innovation and profitability. The main reason for the downgrade is the cancellation of Apple's planned all-glass iPhone, which was expected to launch in 2027 for the iPhone's 20th anniversary. The project was reportedly abandoned because of low production yields, limiting Apple's ability to raise average selling prices for premium models. Jefferies also noted that current market valuations overestimate the sales potential of upcoming devices, such as the iPhone 18 Fold. The firm reduced its forecast for iPhone average selling price growth and stated that Apple's stock price reflects overly optimistic expectations. Following the downgrade, Apple shares fell by up to 1.9%. Additional risks include supply chain issues and a slower rollout of Apple Intelligence, which could further impact margins and hardware valuation. Analyst sentiment has become more cautious, with fewer buy recommendations.