Apple Downgraded at Jefferies on iPhone Outlook

Rating and Target Price Actions - Jefferies downgraded Apple's stock rating to underperform from hold [1] - The price target for Apple was set at $263.66% [1] Product Strategy and Roadmap - Apple planned an all-glass iPhone for the 20th anniversary in 2027 featuring no metal mid-frame or physical buttons [3] - The new form factor was intended to expand to Pro and Pro Max models by fiscal year 2028 and fiscal year 2029 to elevate average selling prices (ASPs) [4][5] - The all-glass iPhone project, codenamed glass wing, was canceled due to low production yields [1][5] Supply Chain and Market Challenges - Apple faces major supply chain bottlenecks in memory and advanced node capacity at TSMC [8] - AI companies outbid consumer electronics companies like Apple for memory and advanced chip capacity, potentially dropping Apple to number three at TSMC by 2027 [9][12] - Soaring memory and component costs forced Apple to rely on higher average selling prices (ASPs) to protect profit margins [5][13]