Jefferies Downgrades Apple Stock Amid iPhone Production Woes

Apple Inc.'s (AAPL) stock has taken a hit in recent weeks, dropping over 10% from its all-time high. Jefferies Financial Group Inc.'s (JEF) Head of China Technology, Telcom, and Software Equity Research, Edison Lee, downgraded AAPL's rating to 'Underperform' from 'Hold', citing production yield issues with the planned all-glass iPhone for September 2027.

Lee cut Jefferies' 12-month price target for AAPL to $263.66 from $285.56, a decrease of around 7.67%. This represents a potential 14.15% downside if Apple's stock continues its bearish momentum.

The production issues are compounded by rising memory costs due to the AI boom and global supply shortages. Apple is reportedly seeking approval to use China's memory chips from ChangXin Memory Technologies (SSE: 688825) for iPhones, MacBooks, and other devices.