[Digital Today reporter Jinju Hong] Jefferies lowered its price target on Apple again and also downgraded its investment rating.

On Aug. 11 (local time), IT outlet 9to5Mac reported that Jefferies believes Apple has cancelled plans for a 2027 "all-glass iPhone". Jefferies adjusted its price target to $263.66 and downgraded the stock to "underperform" from "neutral".

The change came as part of a reassessment following Apple's recent earnings release. Jefferies had already cut its target once, to $285.56 from $308.92, after Apple's fiscal 2026 third-quarter results and fourth-quarter guidance. It lowered it again to $263.66. It maintained a "neutral" rating as recently as July 31, but this time shifted to a more conservative stance by one step.

The main reason was weaker expectations for changes in the next iPhone design. There has been continued speculation that Apple is preparing an all-glass iPhone centered on an all-glass front to mark the iPhone's 20th anniversary in 2027. Jefferies had initially expected the design to expand to other higher-end models such as the iPhone Pro and iPhone Pro Max, contributing to higher average selling prices and improved margins.

But Jefferies concluded from its supply-chain checks that the plan was cancelled due to production yield issues. Analyst Edison Lee (에디슨 리) said the all-glass iPhone was cancelled because "production yields were not good". He called the change a "major setback" to Apple's strategy of expanding higher-priced iPhones. He said it had put the brakes on a plan to push more expensive iPhones at a time when memory costs are rising.

The stock also weakened on the day. Apple shares closed down 1.53 percent at $308.26 on Aug. 11. The stock rose as much as 0.41 percent during the session but failed to hold onto gains. In recent trading, it has recovered about 2.5 percent from its low after falling about 10 percent following the earnings release.

The report showed that attention around Apple shares is shifting from near-term results to strategy for the next products. It also highlighted how much expectations for price increases in premium models and improved profitability depend on changes in hardware design. How Apple will actually approach its 2027 product strategy, and how it will defend average selling prices in its premium lineup, are expected to be the next points to watch.

Separately, other foreign media outlets including 9to5Mac later reported that Apple will maintain plans for a design overhaul of iPhone Pro models to be launched next year.