Jefferies Downgrades Apple Stock Over Canceled All-Glass iPhone Redesign

Jefferies analyst Edison Lee has downgraded Apple's stock rating to 'Underperform' due to concerns over the cancellation of the company's all-glass iPhone redesign for its 20th anniversary. The rumored device was expected to launch in September 2027 with a price tag of $2,060.

According to Lee, the project has been put on hold due to low yield rates in manufacturing. This move is seen as a major setback for Apple's efforts to increase prices and maintain profit margins amidst rising memory costs.

The analyst also points out that Apple's AI strategy and increasing component costs for the iPhone 19 Pro are contributing factors to the downgrade. While it's unclear whether the entire redesign has been canceled, Lee suggests that certain aspects of it may still be in development.