Apple cancels all-glass iPhone; Jefferies cuts rating and price target

Analyst firm Jefferies has downgraded Apple from "hold" to "underperform" and trimmed its price target from $285.56 to $263.66. The move follows reports that the all-glass iPhone has been canceled and indications that the foldable model will cost more than expected.

The all-glass device was supposed to anchor a broader push toward higher-margin Pro and Pro Max variants. Without it, Jefferies cut its projected compound annual growth rate for iPhone average selling price to 6.1% for fiscal 2026 through fiscal 2031, down from 9%.

The firm's checks also flagged a DRAM increase to 16 GB exclusively for the iPhone 19 Pro Max, which it said signals limited progress on Apple Intelligence. If memory prices keep climbing into fiscal 2027, Apple could scrap the upgrade entirely, since each additional 4 GB currently adds roughly $60 to $70 to the bill-of-materials cost at current contract prices.

Jefferies says the foldable iPhone is now Apple's only lever to raise average selling prices and margins. However, with higher memory costs, the upcoming foldable's starting price is expected at $2,099, rising to $3,099 for the 2 TB model. The firm forecasts sales of 14 million units in fiscal 2028, keeping the device a niche product.

Jefferies also addressed recent iPhone trade-in changes, noting Apple cut values for the iPhone 16 Pro and 16 Pro Max in China while raising them elsewhere. The firm said this does not signal anything about new iPhone pricing, as trade-in rates are renegotiated monthly with regional dealers.