Jefferies Downgrades Apple Stock Amid All-Glass iPhone Cancellation

Apple's stock price is sliding after Jefferies downgraded its rating from Hold to Underperform. The move comes as a result of supply chain checks that pointed to the cancellation of an all-glass iPhone model scheduled for release on September 27. According to Edison Lee, the analyst behind the downgrade, this cancellation is a major setback for Apple's efforts to introduce higher-priced iPhone models at a time when memory costs are rising across the industry.

The cancellation and its impact were reflected in Lee's revised financial model, which trimmed earnings per share projections by 2.1% and 3.4% for fiscal 2028 and 2029 respectively. The DCF-based valuation was also reduced by 8%, resulting in a new price objective of $263.66 against the previous target of $285.56.

The potential downside from current levels is approximately 16%. Another factor contributing to Lee's cautious view is Apple's recent decision to increase iPhone trade-in values, which could accelerate purchases of the iPhone 17 lineup in the short term but also risks thinning out the available buyer pool for the upcoming iPhone 18 model.