Jefferies Cuts Apple to Sell on Abandoned All-Glass iPhone Project
Jefferies downgraded Apple's stock to Underperform from Buy after it abandoned its all-glass iPhone project due to manufacturing yield issues. The device was set for release in September 2027 with a price tag of $2,060. According to Jefferies analyst Edison Lee, the project was discontinued because of inadequate production yields.
The cancellation of the all-glass variant led Jefferies to reduce its iPhone average selling price growth projection from 9.0% to 6.8% for the 2026-2031 period. The firm also decreased its earnings per share forecasts, lowering fiscal 2028 estimates by 2.1% and fiscal 2029 projections by 3.4%. Lee believes the foldable iPhone is now Apple's key driver of higher average selling prices.
Jefferies reduced its price target for Apple to $263.66 from $285.56, representing a potential downside of roughly 16% from the previous Friday's closing price. Shares of Apple declined approximately 1.9% following Monday's analyst downgrade.