# Apple downgraded by Jefferies as all‑glass iPhone plan scrapped

**Published:** 2026-08-13T04:45:59.185Z  
**Topic:** Apple News  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/edc61d29-8003-4d7b-9991-7246d667d029

Apple shares slip ~2% after Jefferies cuts rating to Underperform, citing cancellation of an all‑glass iPhone and rising memory costs – see the key numbers and

Apple’s stock fell about 2% on Monday after Jefferies lowered its rating to Underperform and cut the price target to $263.66, citing supply‑chain checks that suggest the rumored all‑glass iPhone slated for a 2027 anniversary launch has been cancelled because of low yields [1]. The downgrade highlights concerns that Apple may lose a pricing lever just as component costs, especially memory, are climbing.

| At a glance | |
|---|---|
| Rating change | Underperform (from Hold) |
| New price target | $263.66 (down from $285.56) |
| All‑glass iPhone status | Cancelled per supply‑chain checks |
| Memory cost pressure | Rising, affecting margins |

## All‑glass iPhone cancellation and margin outlook  
Jefferies analyst Edison Lee said the all‑glass body was intended to migrate to future iPhone Pro and Pro Max models, a move that would have supported higher average selling prices and margins [1]. With the project apparently scrapped, Apple loses a potential “premium pricing lever” at a time when memory component prices are surging, a factor Lee believes could compress margins if Apple cannot offset costs elsewhere [3]. The analyst also flagged Apple’s slower rollout of its Apple Intelligence AI suite, arguing that weaker on‑device AI features make it harder to justify higher memory specifications [1].

## Broader context: earnings strength and China strategy  
Despite the downgrade, Apple reported a 16% year‑over‑year revenue increase to $109.42 billion in its fiscal third quarter, beating estimates and driven by a 22% rise in iPhone sales [3]. The company also announced testing of memory chips from Chinese supplier CXMT for iPhones and MacBooks sold in China, a move aimed at mitigating component shortages linked to AI‑driven demand [1]. Apple’s expansion into China’s AI market includes enabling mainland users to connect Alibaba’s Qwen models with Siri, underscoring a dual focus on hardware sourcing and AI partnerships [1].

## Market reaction and analyst sentiment  
Jefferies’ downgrade is rare; only three other analysts currently recommend selling Apple, while 19 maintain buy ratings [2]. The firm’s new price target of $263.66 sits near the low end of Wall Street forecasts, contrasting with a consensus target of $245.17 from 30 analysts [2]. Apple’s share price has risen more than 15% so far in 2026, but momentum softened after the latest earnings, reflecting the market’s sensitivity to margin‑related risks [1].

## What to watch
- **September 2027 launch** – Confirmation of any new premium iPhone design, including a possible foldable model, could restore pricing momentum.  
- **Q1 2027 earnings** – Guidance on iPhone revenue growth and memory cost trends will test the downgrade thesis.  
- **CXMT memory chip rollout** – Progress on Chinese memory integration may affect supply‑chain resilience and margin outlook.

The downgrade underscores a pivotal tension for Apple: sustaining premium pricing amid rising component costs without the anticipated all‑glass design boost, while its strong sales and strategic moves in China keep the broader outlook less certain.

## Sources
1. Invezz — [Apple stock falls after Jefferies downgrade on all-glass iPhone...](https://invezz.com/news/2026/08/10/apple-stock-falls-after-jefferies-downgrade-on-all-glass-iphone-concerns/)
2. Benzinga — [Apple Gets Rare Downgrade From Jefferies, Analyst... - Benzinga](https://www.benzinga.com/markets/equities/25/01/43087992/apple-gets-rare-downgrade-from-jefferies-analyst-warns-on-slowing-revenue-growth-missed-forecasts-and-falling-iphone-demand)
3. Insidermonkey — [Apple (AAPL) Downgraded as Soaring Memory Costs Test iPhone...](https://www.insidermonkey.com/blog/apple-aapl-downgraded-as-soaring-memory-costs-test-iphone-pricing-power-1808905/)

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Cite as: TrendWatcher, "Apple downgraded by Jefferies as all‑glass iPhone plan scrapped", https://www.trendwatcher.in/article/edc61d29-8003-4d7b-9991-7246d667d029