Another investment bank has downgraded Apple Inc. (AAPL.US)! The 20th Anniversary all-glass iPhone is rumored to be canceled, and Jefferies Financial Group Inc. warns that raising prices with a foldable screen is more difficult than expected.

Notably, Apple Inc. (AAPL.US) has had its stock rating downgraded to underperform by investment bank Jefferies Financial Group Inc., marking the latest evidence of growing bearish sentiment toward the company in the market. Jefferies Financial Group Inc. analyst Edison Lee has expressed concerns about the outlook for Apple Inc.'s iPhone, particularly regarding the companys ability to drive up the average selling price (ASP) over time. In his report, he noted that a supply chain inspection indicated that the company has cancelled the 20th Anniversary all-glass iPhone model due to low production yield. This suggests that introducing a completely new form factor in the iPhone to drive up average selling prices is more challenging than expected. Earlier reports indicated that Apple Inc. plans to unveil a groundbreaking design for a new model next year, coinciding with the 20th anniversary of the iPhone. The next-generation iPhone Pro series is expected to feature an almost borderless four-curved display that extends around the body of the device for a more unified visual effect. Foldable phones may become niche products Edison Lee wrote that the foldable iPhone, which is expected to be launched for the first time next month, will likely be the only key driver pushing for higher average selling prices and gross margins in the coming years. However, the soaring prices of critical components like memory chips will drive up the pricing of the product, and we still believe that such an expensive phone will be a niche product. Jefferies Financial Group Inc. previously rated Apple Inc.'s stock as hold and, in downgrading the rating, has lowered its target price from $285.56 to $263.66. Apple Inc.'s stock closed at $313.33 last Friday. According to data, six institutions currently rate Apple Inc. with a rating equivalent to sell. This number matches the highest record since 2012. Last month, KeyBanc Capital Markets downgraded the stock to underweight due to concerns over demand and valuation. KeyBanc pointed out that U.S. carriers are generally reducing phone subsidies, which will directly suppress the rate of iPhone upgrades. The institution believes that the markets general expectation of an 8% growth in iPhone sales for the fiscal year 2027 is "too aggressive." Additionally, as Apple Inc.'s most significant growth engine and profit source in recent years, the services business is facing challenges with slowing growth. KeyBanc expects that the slowdown in iPhone sales will drag down the annual growth rate of the services business to 7%, significantly lower than the markets common expectation of 12%. Growing cautious sentiment toward Apple Inc. Analyst consensus rating drops to the lowest level since 2019 Overall, the comprehensive recommendation rating, serving as an alternative metric for the buy, hold, and sell ratios, has fallen to 3.88 out of 5, marking the lowest level since 2019. The proportion of analysts recommending buying the stock is below 60%, a significant drop compared to similar mega-cap stocks like Microsoft Corporation, Amazon.com, Inc., and NVIDIA Corporation, all of which have received over 90% institutional support. Apple Inc.'s stock fell by 1.3% in pre-market trading on Monday. As of Friday's closing price, the stock has dropped approximately 8% from its recent peak. This recent decline in stock price followed the release of Apple Inc.'s quarterly earnings report, during which the company provided disappointing sales forecasts due to component shortages.