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Jefferies downgrades Apple amid all-glass iPhone scrapped reports
The downgrade focused on margin pressure as memory chip costs rise, even though a later report said the 2027 redesign remains on track.
Reports that Apple’s all-glass iPhone redesign could have been scrapped triggered a Jefferies downgrade and renewed investor worry about the company’s ability to sustain premium pricing, according to MarketBeat Ratings.
The all-glass iPhone was expected as a key part of Apple’s strategy for the iPhone 20th anniversary in 2027, with pricing expectations believed to be above $2,000. Jefferies analyst Edison Lee argued that if the model is removed, Apple loses a clear route to higher average selling prices.
MarketBeat Ratings also tied the concern to a separate cost issue, saying Apple is facing sharper component expenses, particularly memory chips, as demand linked to the AI boom has driven those prices higher. The higher costs have contributed to Apple reducing its guidance on gross margins.
MarketBeat Ratings added that while the initial reports stoked uncertainty, a later report said the redesign remains on track for 2027, and Apple shares were down only slightly on the news, trading around $305 after last month’s earnings-driven gap lower.