All-glass iPhone reportedly canceled, according to analyst firm Jefferies

According to Investing.com, analyst firm Jefferies downgraded Apple from "hold" to "underperform" and lowered its price target from $285.56 to $263.66, citing the reported cancellation of the all-glass iPhone and indications that the foldable model will be pricier than expected. Both developments leave the company's roadmap for higher average selling prices looking shaky.

The all-glass model was reportedly supposed to serve as an anchor for a wider shift toward higher-margin Pro and Pro Max variants. With it gone, Jefferies cut its projected iPhone average selling price (ASP) compound annual growth rate (CAGR), which is the annualized rate at which the ASP is expected to grow from fiscal 2026 through fiscal 2031 to 6.1%, down from 9%.

The firm's checks also flagged an increase in DRAM to 16 GB exclusively for the iPhone 19 Pro Max, which it said is a sign of limited progress on Apple Intelligence. If memory prices continue climbing into fiscal 2027, the firm says Apple could scrap the upgrade entirely, since each additional 4 GB currently adds around $60 to $70 to the bill-of-materials (BOM) cost at current contract prices.

Jefferies says the foldable iPhone is the only lever left for Apple to raise its average selling prices and margins. However, amid higher memory costs, the firm expects the upcoming foldable's starting price to be $2,099, rising to $3,099 for the 2 TB model. It expects the device to remain a niche product and forecasts sales of 14 million units in fiscal 2028.

Jefferies also addressed recent iPhone trade-in changes, noting that Apple cut trade-in values for the iPhone 16 Pro and 16 Pro Max in China even though it raised them elsewhere. The firm said the move does not signal anything about new iPhone pricing because trade-in rates are renegotiated monthly with regional dealers.