Jefferies Downgrades Apple to 'Sell' After Cancelled Glass iPhone

Jefferies analysts downgraded Apple's stock rating from 'hold' to 'sell' following the company's cancellation of its glass-bodied iPhone project. This decision highlights the tech giant's challenges in launching innovative products. Analysts noted that the cancelled project could negatively impact Apple's growth expectations and that the company may not achieve the anticipated momentum in its current product lineup. In the Jefferies report, it was stated that the technical and production issues Apple faced with the glass iPhone raise questions about the efficiency of the company's R&D spending. This situation could limit Apple's ability to introduce a new groundbreaking product in the short term. Additionally, the report emphasized that saturation in the smartphone market and increasing competition continue to pressure Apple's sales growth. Analysts expressed that sales of Apple's current iPhone series may fall below expectations, and the growth in the company's services revenue may be insufficient to offset this decline. Jefferies also revised its price target for Apple downward, advising investors to be cautious regarding the stock. This downgrade, combined with general uncertainties in the technology sector, suggests that Apple's shares may remain under pressure in the near term. This is not investment advice.