Jefferies has reaffirmed its “sell” rating on Apple stock. Did the “glass” iPhone fail to impress?

Jefferies analyst Edison Lee has reaffirmed his “sell” recommendation on Apple shares and their “Underperform” rating (below market), according to CNBC. The investment bank strategist initially issued this assessment of the iPhone maker’s stock in early August, citing “the company’s cancellation of the glass-bodied iPhone.” Subsequent reports from Bloomberg sources about Apple’s plans to release a Pro version of the iPhone with a glass body, however, apparently failed to convince Lee.

Apple shares fell 1.2% during trading on August 31.

Li's price target for Apple shares also remained unchanged at $263.66 per share, according to Marketscreener data. This target implies a decline of more than 17% in the iPhone maker's stock price from its most recent closing price.

According to CNBC, a Jefferies analyst attributed his view on the outlook for Apple shares to the company’s “potential risk of a decline in iPhone sales and gross margin.”

Li also noted that “price increases [for Apple products] in China may appear significantly lower than what Jefferies’ [forecast] model projects,” but “the positive effect of exchange rates (FX tailwind) must be taken into account.” “Based on the results of our latest industry checks, the price increase to be announced in China (in yuan) for the iPhone 18 Pro/Pro Max will range from 8% to 15%,” the analyst noted. “These figures may seem lower than our forecasts for Apple, but it’s worth keeping in mind that the yuan has strengthened against the U.S. dollar by about 6% on a year-over-year basis,” Li added. According to the results for the third quarter of fiscal year 2026, China accounted for $18.8 billion, or about 17% of Apple’s revenue. It is the company’s third-largest market after the U.S. and Europe.

CNBC does not specify whether Li commented in his note on the Bloomberg report about Apple's plans to release a "glass" smartphone.

On August 10, Jefferies downgraded its recommendation on Apple stock from “hold” to “sell,” citing, among other things, “the company’s cancellation of the release of an iPhone with a glass casing to mark the 20th anniversary.” The investment bank’s analyst reached this conclusion after analyzing supply chains and noting a “high defect rate” among “glass” iPhones. In that case, the only driver of Apple’s growth in the coming years will be the foldable version of the smartphone, which the company plans to release in September, Li wrote.

The day after the Jefferies analyst’s note was published, Bloomberg sources reported that Apple still plans to release a new iPhone Pro with a “glass design” in 2027, timing the launch to coincide with the smartphone’s 20th anniversary. However, these reports apparently failed to change Li’s mind.

On September 9, Apple is set to hold its fall conference, where it traditionally unveils new gadgets. At this event, Apple is expected to introduce the new generation of iPhone 18 Pro and Pro Max—the successors to its current flagship smartphones, — as well as new Apple Watch models, smart home devices, and its first foldable smartphone, thereby entering a market dominated by Samsung Electronics.

Despite the decline in trading on August 31, Apple’s stock is up 16% year-to-date. The company’s stock price has been supported in recent months, among other things, by its strategy of staying out of the costly AI race.

Nevertheless, in early August, the number of negative recommendations on Apple shares reached a record high since 2012, as Bloomberg noted. At that time, six investment banks and firms were advising investors to sell the iPhone maker’s stock. Analysts’ assessments were linked, among other things, to a shortage of memory chips, concerns about demand, and the company’s own weak sales forecast due to a shortage of components.

According to the latest data from MarketWatch, the number of Wall Street analysts with a bearish outlook on Apple stock has fallen to four over the past month (they assign the company’s stock “Underweight” and “Sell” ratings), while the majority of analysts covering Apple—28 out of 48—recommend buying the iPhone maker’s stock. Another 14 analysts advise holding the stock in their portfolios.

This article was AI-translated and verified by a human editor