Wall Street Downgrades Apple

With less than a month to go before Tim Cook hands over Apple's CEO role to John Ternus, the iPhone maker is facing several challenges, including slower growth, rising memory costs and increasing investor concerns, Sebastian Herrera reported for Fortune Tech.

Jefferies has downgraded Apple's stock from "hold" to "underperform." [Photo: Apple]

The latest setback came when investment firm Jefferies downgraded Apple's stock from "hold" to "underperform," cutting its price target from $285.56 to $263.66.

Jefferies analyst Edison Lee cited supply-chain checks suggesting that Apple had canceled a rumored all-glass iPhone expected for the iPhone's 20th anniversary in 2027.

The analyst had expected the device's premium pricing to help raise Apple's average selling price.

"We believe this shows that introducing new form factors in the iPhone to drive higher [average selling price] is more difficult than expected," Jefferies analysts wrote.

The firm also cited Apple's challenges from rising memory prices and what it viewed as limited progress in artificial intelligence.

Apple's leadership transition is already scheduled for Sept. 1, 2026, when Ternus will become CEO and Cook will become executive chairman.