Tech news in 3 minutes

Pro: Apple downgrade

10 h ago

**Apple** stock faces a **Jefferies downgrade** after the cancellation of its all-glass iPhone, raising concerns about the company’s ability to drive higher average selling prices (ASP) amid soaring memory costs. In an SEO-focused news summary, the core point is clear: Jefferies cut Apple to **underperform** from hold, slashing its price target to $263.66 (nearly 16% downside), citing the all-glass iPhone’s cancellation due to low yield as a major setback for premium pricing. Analyst Edison Lee noted that the plan to extend all-glass features to future Pro models was key to raising ASP and margin, but the setback makes introducing new form factors harder than expected. The foldable iPhone, slated for September 2026, is now the only near-term driver of higher ASP, yet surging memory costs—fueled by AI adoption—could push its starting price above $2,000, limiting sales and upside for Apple stock. Jefferies also cut its fiscal 2028 EPS forecast by 2.1%. Shares dipped over 1% in pre-market trading, though Apple remains up 15% year-to-date. The bearish call contrasts with Wall Street consensus: 30 of 47 analysts rate Apple a buy or strong buy, with only three underperform ratings. For investors tracking **semiconductor**, **AI chip**, and **smartphone** trends, this signals that Apple’s premium product strategy faces headwinds from both manufacturing challenges and component cost inflation.