Jefferies Downgrades Apple Stock to 'Underperform' Amid Production Woes

Jefferies has downgraded Apple's stock to 'Underperform' due to production yield problems and rising memory costs. The firm cut its 12-month price target to $263.66, forecasting a potential 14.15% drop from current levels.

The cancellation of Apple's planned all-glass iPhone for 2027 has been cited as one reason for the downgrade. Apple is seeking approval to use Chinese memory chips to mitigate supply issues, but the AI-driven memory shortage continues to pressure production costs.

Despite this, Wall Street analysts maintain an average 12-month price target of $334.43, reflecting an expected 8.9% gain if supply challenges ease. Apple shares dropped 2% following the downgrade.