Jefferies' Apple Downgrade May Be Dead Wrong Amid Strong Financial Results

Apple's stock price has taken a hit after Jefferies downgraded it from Hold to Underperform on August 10, 2026. The firm cited rising memory costs and the reported cancellation of the all-glass iPhone as reasons for the downgrade. However, this bear case may be dead wrong.

Apple's recent quarterly results show that it posted its strongest June quarter ever. Fiscal Q3 2026 revenue hit $109.42 billion, up 16.4% year over year, with EPS of $2.02 versus a $1.89 consensus. iPhone revenue surged to $54.25 billion from $44.58 billion, and Services set another record at $30.74 billion.

CEO Tim Cook was direct about the results: “Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment.”

The Jefferies thesis relies on component inflation, but supply chain analyst Ming-Chi Kuo has already pushed back. According to Kuo's analysis, “Tight memory supply is real”, yet Apple plans processor production months in advance, making any shock scenario unlikely.