On August 10, Jefferies downgraded Apple Inc. (NASDAQ:AAPL) to underperform from hold, cutting its price target to $263.66 from $285.56, implying roughly a 16% downside from Friday’s close of $313.33. Analyst Edison Lee said supply chain checks show Apple has canceled its planned all-glass 20th-anniversary iPhone, expected to launch in September 2027, due to poor production yield. Jefferies also trimmed its fiscal 2028 earnings forecast by 2.1%. Shares fell about 1.3% to 1.5% on the news.
Why This Matters
Jefferies says Apple Inc. (NASDAQ:AAPL) has quietly canceled its marquee anniversary iPhone just as component costs are spiking industry-wide. That adds to a growing pile of Wall Street skepticism and raises a real question: is this the start of genuine cracks in Apple’s pricing power, or just one bearish call against a stock still up double digits this year?
The Bull Case
As of August 7, Apple is still up over 15% year-to-date, and the vast majority of Wall Street remains bullish, with 30 of 47 covering analysts rating the stock buy or strong buy. The foldable iPhone debuting next month is Apple Inc. (NASDAQ:AAPL)’s biggest hardware redesign ever and gives the company a genuine new premium price anchor even with the all-glass model shelved. Despite an industry-wide memory shortage pushing prices higher across the smartphone market, Apple’s brand loyalty gives it real room to pass through modest increases. Yahoo Finance tech editor Dan Howley noted that a roughly $100 price bump, spread across a phone’s life and paid monthly, may not be enough to meaningfully change how people buy.
The Bear Case
Six analysts now carry sell-equivalent ratings on Apple, tying the highest count since 2012, and the stock’s consensus recommendation of 3.88 out of 5 is its lowest since 2019. Fewer than 60% of analysts recommend buying, well below megacap peers Microsoft, Amazon, and Nvidia, which are all backed by more than 90% of covering analysts.
Jefferies argues the canceled all-glass model shows that “introducing new form factors” to justify higher prices is “more difficult than expected.” The foldable iPhone is now the only near-term booster of higher prices. However, surging memory costs could push its starting price above $2,000, which Jefferies itself warns could make it a niche product with limited sales impact. This follows an earlier disappointment too: a soft sales forecast linked to component shortages already knocked the stock about 8% off its recent peak.
Insider Monkey’s Hedge Fund Data
Apple Inc. (NASDAQ:AAPL) was held by 170 hedge funds as of Q1 2026, up modestly from 169 the prior quarter. That trails Microsoft’s 282 hedge fund holders and Amazon’s 353 by a wide margin. Apple remains one of the most recognized stocks in the market, but it isn’t the top hedge fund pick among its megacap peers.
Conclusion
One canceled feature isn’t a crisis on its own. But paired with a record tally of sell ratings and a shrinking analyst consensus, it’s a real test of whether Apple Inc. (NASDAQ:AAPL) can keep raising prices through design alone.
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Disclosure: None. This article is originally published at Insider Monkey.
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