Apple shares fell more than 2% in pre-market trading following a rating cut from Jefferies. The firm downgraded the stock from Hold to Underperform and reduced its price target from $285.56 to $263.66.
A supply chain survey indicates Apple canceled plans for a premium all-glass iPhone model. Jefferies analysts view this cancellation as a major setback for the company’s high-end pricing strategy. Rising component costs for items like memory chips create additional pressure on profit margins.
Despite the downgrade, analyst Gene Munster maintains a positive outlook on the company. Munster highlights strong revenue guidance as a key indicator of stability. He also anticipates a significant hardware upgrade cycle driven by new artificial intelligence features.