Apple Stock Downgraded to Sell on All-Glass iPhone Cancellation

Apple stock is facing pressure after Jefferies analyst Edison Lee downgraded AAPL to Underperform (equivalent to Sell) from Hold. The price target was also reduced by about 8% to $263.66 from $285.56, implying an 18% downside.

The downgrade comes as a result of Apple's decision to cancel the all-glass iPhone, which was expected to be released on September 27. According to Lee, the cancellation is due to low yield, and this move will have a major setback on Apple's effort to bring higher-priced iPhones to market.

Rising memory costs are also adding pressure on Apple's stock. Lee believes that Apple needs premium iPhone models to help offset these higher costs, but without the all-glass model, he sees less scope for Apple to drive this upgrade strategy.