Jefferies downgrades Apple to sell as analysts flag iPhone challenges and memory cost pressures

Jefferies cut Apple’s rating to “underperform,” citing a cancelled all-glass iPhone, rising memory prices and slow AI progress, adding Apple to a growing list of sell-rated stocks.

Jefferies announced a downgrade of Apple’s shares to underperform, trimming its price target and joining a handful of other firms that have moved to sell-equivalent ratings, a tally last reached in 2012. The decision follows findings that Apple cancelled a rumored all-glass iPhone intended for the 20th-anniversary launch, raising doubts about the company’s ability to raise average selling prices through new form factors.

Analysts also flagged the strain from rising memory component costs, which are expected to push the price of Apple’s forthcoming foldable phone to $2,199 for the 256-GB model and $3,099 for the 2-TB version. Additionally, the firm noted limited progress in Apple’s artificial-intelligence efforts. Apple’s shares have been under pressure after it disclosed slower iPhone growth and margin compression, and the company is set to unveil its first foldable device at an early-September event. The downgrade comes as John Ternus prepares to assume the chief executive role, succeeding Tim Cook, amid heightened investor scrutiny of Apple’s product strategy and AI roadmap.