Jefferies Downgrades Apple Over Alleged All-Glass iPhone Cancellation
Jefferies has downgraded Apple's stock due to concerns that the company may be abandoning plans for a 20th-anniversary iPhone with an all-glass design, which was expected to boost prices.
According to Jefferies' supply-chain checks, the low yield of the glass material makes it uneconomical for Apple to proceed with the project.
The 20th-anniversary iPhone was expected to fetch a blended retail price of $2,060 and help increase the average selling price (ASP) of iPhones. However, Jefferies estimates that Apple will now rely on its foldable iPhone to drive higher ASPs and margins.
Jefferies cut its estimate for the compound annual growth rate (CAGR) of the iPhone ASP from 9.0% between fiscal years 2026 and 2031 to 6.8%, and reduced its earnings per share (EPS) estimates for 2028 and 2029 by 2.1% and 3.4%, respectively.
The downgrade includes an 8% price-target cut, to $263.66 per share, implying about 16% downside from last Friday's closing price.