Jefferies Downgrades AAPL as 20th-Anniversary iPhone Plans Hit Snag

Apple's (AAPL) shares dropped over 2% in Monday's opening trade after Jefferies downgraded the stock, citing concerns around the company's planned 20th-anniversary iPhone. The all-glass model, expected to launch in September 2027, was canceled due to poor production yields.

Jefferies described the cancellation as a 'major setback' for Apple's efforts to introduce higher-priced iPhones, particularly with memory costs continuing to rise. The firm also believes Apple had planned to extend the all-glass design to future iPhone Pro and Pro Max models, affecting their broader product roadmap.

Gene Munster, Managing Partner at Deepwater Asset Management, remains positive on Apple, pointing to the company's 9% to 11% September-quarter revenue growth guidance. He expects a shift in the iPhone upgrade cycle, with high-end iPhones seeing stronger upgrades this fall and a potential boost in sales next year.

Munster also predicts a major consumer hardware upgrade cycle beginning around mid-to-late 2027, driven by personalized AI performing inference on devices. This trend is expected to benefit Apple and other hardware makers, making the shares undervalued and setting up a strong next 12 months for AAPL.