A major Wall Street firm downgraded Apple shares on Monday after an analyst decided that the long-rumored, radical iPhone redesign probably will not happen.
Jefferies lowered its rating on Apple and cut its price target, making it one of the lowest on Wall Street. Apple shares dropped 1.2% in premarket trading, while the broader Nasdaq rose slightly.
The downgrade is mainly because Apple is believed to have canceled its all-glass iPhone project, which was reportedly in development since 2025 and rumored for a 2027 launch. Apple has not commented on these rumors, but it did file a patent years ago for a six-sided glass enclosure. Jefferies once thought the device was likely, but now believes the project has stopped. Their supply-chain checks suggest it was scrapped because of low manufacturing yields.
Jefferies called the cancellation a major setback for Apple’s plans to release higher-priced iPhones, especially as memory costs are rising and squeezing profits. If the device had launched in September 2027 for the iPhone’s 20th anniversary, Jefferies thinks it would have been the most expensive iPhone yet. The firm also believes Apple planned to use the all-glass design in future Pro and Pro Max models, which could have helped boost average prices and margins. Jefferies sees this as a key way for Apple to defend against higher component costs.
Jefferies also gave a cautious view on Apple’s AI plans and the expected costs for the next iPhone Pro Max, set for 2027. The firm said Apple’s slow rollout of AI features makes it harder to justify spending more on extra memory, which is usually needed for advanced AI models to run on the device.
Before Monday, Apple shares had risen more than 15% this year, slightly outpacing the Nasdaq. But last month, disappointing third-quarter earnings caused a selloff that wiped out about $359 billion in market value.has context menu
