Jefferies Warns of Apple Setback as All-Glass iPhone Model Canceled

Apple's stock price slipped about 2% on Monday after Jefferies downgraded its rating on the tech giant, citing concerns over a reportedly canceled all-glass iPhone model and rising memory costs.

The analyst note from Jefferies, led by Edison Lee, cut Apple to Underperform from Hold and reduced the price target to $263.66 from $285.56.

According to Jefferies' supply-chain checks, the all-glass model was dropped due to low production yields, which could have limited its potential impact on premium pricing and margins.

The canceled device was expected to carry an estimated blended retail price of about $2,060 and had been slated for release in September 2027. Jefferies believes that this project could have supported higher average selling prices and margins if the design had later expanded to other iPhone models.

Apple is also facing increased memory costs as it develops future devices, which may further impact its pricing strategies. Jefferies expects a foldable iPhone to become a more important premium product, although its projected price could limit demand.