Lates News

Jefferies Group downgraded Apple's (AAPL.O) rating from "Hold" to "Underperform" on Monday, and lowered its target price from $285.56 to $263.66, implying about a 16% downside from Friday's closing price. Analyst Edison Lee noted in a report to clients that the originally planned 20th anniversary all-glass iPhone has been canceled due to poor yield rates. This model was initially expected to have a blended retail average price of $2,060. Apple's broader plan is to "extend the all-glass feature to future iPhone Pro and Pro Max models, further boosting its average selling price and profit margins." Jefferies views this move as a "major setback" for Apple's strategy to push higher-priced iPhones amidst soaring memory costs. As a result, Jefferies has lowered its forecast for the compound annual growth rate of iPhone average selling prices from 9.0% to 6.8% for the fiscal years 2026 to 2031, and reduced its earnings per share prediction for fiscal year 2028 by 2.1%.