Jefferies Downgrades Apple to Sell as All-Glass iPhone Scrapped Due to Low Yield Rates
Taylor Wilson
Jefferies cut Apple to underperform with a $263.66 target, after supply-chain checks confirmed the all-glass iPhone planned for 2027 has been cancelled due to poor manufacturing yields — undermining Apple's premium pricing roadmap.
Why did Jefferies turn bearish on Apple?
Jefferies downgraded Apple from "hold" to "underperform" and slashed its target from $285.56 to $263.66.
This means → at last Friday's close, the new target implies roughly 16% downside.
The trigger: supply-chain surveys show the all-glass iPhone slated for September 2027 has been cancelled due to yields too low to manufacture at scale.
What does Apple actually lose with the all-glass cancellation?
The all-glass design — a seamless glass body replacing today's metal-and-glass construction — was Apple's key lever to push higher prices on premium models.
Analyst Edison Lee noted the plan was to extend all-glass across Pro and Pro Max, lifting average selling prices and margins.
In plain terms = Apple was betting on a new shell to justify charging more; that bet is now off the table.
Can the foldable iPhone fill the gap?
Apple's first foldable iPhone is expected in September 2026 and is the only near-term driver for higher ASPs.
But surging AI adoption is driving up memory demand, and rising memory costs could push the foldable's starting price above $2,000.
This means → an ultra-premium price tag would make the foldable a niche product — too few units sold to move the stock.
Did Jefferies cut earnings estimates too?
Jefferies lowered its FY2028 EPS forecast by 2.1%.
Lee argued the all-glass cancellation shows that "raising ASPs through new form factors is harder than expected."
This reflects a systematic doubt about Apple's pricing power over the next two years, not just a one-product setback.
Where does the rest of Wall Street stand?
Apple fell more than 1% in Monday pre-market trading but is still up roughly 15% year-to-date.
Jefferies is in a clear minority: of 47 analysts covering Apple, 30 rate it buy or strong buy; only 3 rate it underperform.
In plain terms = the vast majority of Wall Street is still bullish; Jefferies is calling sell against the crowd.
The key test ahead: whether the all-glass design can be revived in a future iteration with higher yields — that will determine if Apple's premium strategy still has a fallback.
Content is for reference only, not financial advice.