Another investment bank downgrades Apple (AAPL.US)! The 20th anniversary all-glass iPhone is rumored to be canceled, Jefferies warns that raising prices with foldable screens is “more difficult than expected.”

Zhihu Finance APP noted that Apple (AAPL.US) has been downgraded by investment bank Jefferies to an "Underperform" rating, which is the latest example of increasingly bearish sentiment towards the company in the market.

Jefferies analyst Edison Lee expressed concerns about the outlook for the Apple iPhone, especially regarding the company's ability to drive higher average selling prices (ASP) over time.

He wrote in his report that supply chain checks indicate the company "has cancelled the 20th-anniversary all-glass iPhone model due to low production yields." "This suggests that introducing a brand-new form factor to the iPhone to drive ASP growth is more difficult than expected."

Previous reports stated that Apple planned to launch a breakthrough-design new iPhone next year, marking the 20th anniversary of the device. The next-generation iPhone Pro series is expected to feature an almost bezel-less four-curved display, with the screen extending to all sides of the device for a more integrated visual effect.

Foldable iPhones may become a niche product

Edison Lee wrote that Apple is expected to launch its first foldable iPhone next month, "which will now become the only key driver for higher ASP and gross margin in the coming years." However, skyrocketing prices for critical components such as memory chips will push up the product's price, and "we still believe that such an expensive phone will remain a niche product."

Jefferies previously rated Apple shares as "Hold." Along with the downgrade, the target price was lowered from $285.56 to $263.66. Apple shares closed at $313.33 last Friday.

According to data, six institutions have now assigned an equivalent of a "Sell" rating to Apple. This number matches the highest record since 2012. Last month, KeyBanc Capital Markets downgraded the stock to "Underweight" due to concerns over demand and valuation.

 KeyBanc points out that US carriers are generally reducing mobile phone subsidies, which will directly slow the pace of iPhone upgrades. The institution believes that the market's widespread expectation of 8% iPhone sales growth for fiscal 2027 is "overly aggressive."

In addition, as Apple's most important growth engine and profit source in recent years, the services business is now facing slowing growth. KeyBanc expects sluggish iPhone sales will drag the annual growth rate of the services business down to 7%, significantly lower than the general market expectation of 12%.

Cautious sentiment towards Apple is on the rise

Analyst consensus rating falls to lowest since 2019

Overall, the composite recommendation rating, which acts as a proxy for the proportion of Buy, Hold, and Sell recommendations, has fallen to 3.88 out of 5, the lowest since 2019. The proportion of analysts recommending Buy for Apple is below 60%, far lower than comparable mega-cap stocks like Microsoft, Amazon, and Nvidia, all of which receive over 90% institutional support.

Apple shares fell 1.3% in pre-market trading on Monday. As of last Friday's close, the stock is down about 8% from its recent high. The latest pullback in share price occurred after Apple released disappointing sales forecasts due to component shortages in its quarterly earnings report.