Jefferies cut Apple from hold to underperform on Monday. That is the bank’s equivalent of a sell rating. It also cut its price target from $285.56 to $263.66.
Fortune’s Sebastian Herrera reported the call. The bank’s supply-chain checks produced three reasons. Apple has cancelled a rumoured all-glass iPhone, memory prices are surging, and there is little visible progress on AI.
The first of those is the one that matters. That handset was expected next year, for the iPhone’s 20th anniversary.
The cancelled phone is the argument
Jefferies put its reasoning plainly. “We believe this shows that introducing new form factors in the iPhone to drive higher [average selling price] is more difficult than expected.”
