Jefferies downgrades Apple, flags risk to pricing boost as all-glass iPhone shelved
AI Market Summary
Jefferies downgraded Apple to Underperform after supply-chain checks suggested the planned all-glass "20th anniversary" iPhone is unlikely due to low yields, reducing a key pathway to higher iPhone ASPs amid rising memory costs. The bank also flagged the foldable iPhone's projected high starting price as demand-limiting, cut iPhone ASP CAGR assumptions, and lowered 2028–2029 EPS estimates. This pressures near-term expectations for margins and volume.
Impact level
● Medium
Affected assets
NCSKAAPL2USD/USDT-1.47%
AI Insight · NCSKAAPL2USD/USDTAI Insight
▼ Bearish
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Jefferies downgraded Apple, saying the company is unlikely to proceed with an all-glass iPhone that had been expected to support higher iPhone pricing. The firm warned that soaring memory costs could push the iPhone 18 Fold’s starting price to $2,199, which it said could limit demand. Jefferies cut its iPhone average selling price CAGR forecast to 6.8% from 9.0% and reduced its 2028 and 2029 EPS estimates by 2.1% and 3.4%. It also noted Apple has already raised Mac and iPad prices by 20% but has not yet increased iPhone prices.
