Jefferies Downgrades Apple to Sell on Canceled All-Glass iPhone
On Monday, Jefferies lowered its rating on Apple’s stock (AAPL) from hold to underperform, attributing the decision to supply chain investigations that uncovered the scrapping of the all-glass iPhone due to insufficient production yields. Analyst Edison Lee spearheaded this downgrade, marking a notable hurdle for Apple's design goals for the anniversary edition. This cancellation not only impacts Apple's supply chain associates but also opens doors for innovation among rivals in the smartphone sector. The market responded unfavorably, exerting downward pressure on Apple's stock. The all-glass iPhone was designed for a sleek, uninterrupted aesthetic but encountered significant manufacturing obstacles. Jefferies’ downgrade underscores rising worries regarding Apple's competitive position, potentially affecting suppliers who had invested in the glass chassis.
Key facts
- Jefferies downgraded Apple stock to underperform from hold on Monday.
- Analyst Edison Lee cited supply chain checks.
- Apple canceled its planned all-glass iPhone due to low production yield.
- The news was reported by CNBC.
- The cancellation affects Apple's anniversary iPhone plans.
- The downgrade reflects concerns about Apple's hardware innovation.
- Apple's stock price experienced downward pressure.
- Apple has not officially commented on the reports.
Entities
Institutions
- Jefferies
- Apple
- CNBC
Sources
- Quartz —