Why Apple Stock Just Got Downgraded to Sell - Kanebridge News
Share Button

Why Apple Stock Just Got Downgraded to Sell

Apple shares came under pressure after Jefferies downgraded the stock to Underperform and cut its price target to $263.66, citing concerns that plans for a highly anticipated all-glass iPhone have been scrapped. Analyst Edison Lee pointed to production challenges, rising memory costs and uncertainty around Apple’s AI strategy, adding to recent concerns over the tech giant’s growth outlook.

By
Tue, Aug 11, 2026 4:27pmGrey Clock 2 min

Apple AAPL -1.53% stock was downgraded by a major Wall Street firm on Monday, as an analyst predicted that a radical iPhone redesign has been scrapped.

Jefferies analyst Edison Lee cut his rating on Apple to Underperform—generally graded as a moderate Sell rating—from Hold. He also slashed his price target to $263.66 from $285.56, placing it among the lowest on Wall Street.

The downgrade hinges on the suspected cancellation of Apple’s all-glass iPhone. Although the project was reported to be in development as far back as 2025 and rumored to launch as early as 2027, Apple never commented on the speculation. However, the company quietly filed a patent application for a “six-sided glass enclosure” in 2019.

While Jefferies once viewed the release of an all-glass iPhone as plausible, Lee believes development has come to a halt. According to the analyst, supply-chain checks suggest the project was canceled due to “poor production yield.” This refers to the percentage of defect-free units successfully generated during manufacturing.

Lee views the decision as “a major setback to efforts to bring in higher-priced iPhones amid soaring memory costs.” Had it launched in September 2027 to commemorate the iPhone’s 20th anniversary, the device would have carried an estimated blended retail price of $2,060—higher than the average price of any previous model.

“More importantly, we believe the plan was to extend the all-glass features to future iPhone Pro and Pro Max models, further raising their average selling price and margin,” Lee wrote. He believes an all-glass model would have been a crucial defense against soaring memory costs, warning that Apple otherwise faces lower prices for years to come.

In the same breath, the analyst provided a conservative outlook on both Apple’s AI strategy and component costs for the iPhone 19 Pro Max, which is slated for release in 2027. Other supply-chain checks suggest that Apple is considering an upgrade for the iPhone 19 Pro Max, potentially increasing its memory to 16 gigabytes from 12 gigabytes.

In Lee’s view, the slow rollout of Apple Intelligence makes it difficult for Apple to justify the expense of equipping its phones with more memory. Extra RAM is needed to run complex AI models directly on a device.

Apple shares dropped 1.5% on Monday as the tech-heavy Nasdaq Composite COMP -0.32% index fell 0.3%. Heading into the session, Apple had gained over 15% in 2026, marginally outperforming the index.

The stock’s momentum stalled last month when underwhelming fiscal third-quarter earnings triggered a selloff that erased $359 billion in market capitalization, allowing Nvidia  NVDA -2.86% to overtake Apple as the world’s most valuable company.

Lee isn’t the only analyst to sour on Apple stock in recent weeks. KeyBanc analyst Brandon Nispel downgraded shares to Underweight from Sector Weight in July, arguing that Apple’s growth was beginning to stall following a boost in 2025. Sluggish iPhone sales could drag down other hardware categories, Nispel wrote, making the stock look “too expensive” over time.

Even with this recent shift in sentiment, Wall Street hasn’t lost faith in Apple. Of 51 analysts surveyed by FactSet, 32 rate the stock a Buy or the equivalent. Fourteen maintain a Hold rating, while just five—Lee and Nispel included—have issued a negative opinion on the shares.



MOST POPULAR

The Australian leather house has opened an immersive four-day pop-up in Manhattan, unveiling its Bloom Collection and redefining what a product launch can look like.

Following the successful launch of its Palais Collection, MAISON de SABRÉ has unveiled a new modular handbag system offering more than 720 styling combinations.

Related Stories
Lifestyle
Helicopter Parents Are Co-Piloting Their Adult Children’s Careers
By Ray A. Smith 03/08/2026
Lifestyle
The Rise of Million-Dollar Companies With Just One Employee
By 30/07/2026
Lifestyle
MAISON de SABRÉ turns luxury shopping into theatre with New York’s Floral Atelier
By Jeni O'Dowd 15/07/2026

A growing number of employers say Gen Z job seekers are bringing their parents into the hiring process, from attending interviews and negotiating offers to questioning performance reviews. Recruiters warn the trend may raise concerns about independence, even as some families see it as support in a challenging job market.

By Ray A. Smith
Mon, Aug 3, 2026 4 min

Steven Clark had the unpleasant task of firing a 24-year-old—twice. Once was in a brief conversation with the new hire, who’d showed up late or not at all four times in his first week at a construction job.

Then Clark had to do it all over again, this time with the guy’s mother.

She called him a few hours later, pleading to give her son another chance. When Clark told her no, things got heated before he ended the call.

“I said, ‘Look, you know, this is between us and your son. He’s the employee,’” says Clark, who is chief operating officer of a Fairbanks, Alaska-based staffing firm.

Gen Zers make up nearly one-fifth of the adult workforce, and bosses and recruiters say it often feels like the nervous parents who hovered over them through childhood and college are right alongside them. What began as the occasional parent ride-along to a job interview coming out of the Covid era is now full-on career “co-piloting,” said Jasmine Escalera, head career coach at résumé templates service Zety.

More parents are calling up hiring managers, applying for jobs on their adult child’s behalf, and even showing up—or lurking just off-screen—on Zoom calls to help navigate difficult conversations or go over benefits packages.

“The first time it happened, I was appalled,” says Clark, who has fielded calls from parents asking why their child didn’t get a job. “Since then it’s become more of a here-we-go-again reaction.”

Human resource professionals have expressed outrage on social media.

“Parents should not be calling employers to check on their application status or ask questions on behalf of their child,” says Lynne Alba, a director of talent acquisition and physician recruitment at a large health system on Long Island, who vented about the phenomenon in a Tik Tok video she reposted on LinkedIn.

Lynne Alba
Lynne Alba Lynne Alba

At a recent job fair, a mother approached Alba with her daughter’s résumé, explaining that she wanted to work as a nurse. “While I appreciated that she was trying to help, I intentionally shifted my attention to her daughter. No matter what Mom said, I wanted to hear directly from the candidate,” says Alba.

Some parents who step in say it’s a challenging job market for young people, and that they would only intervene in extreme circumstances—social anxiety, a toxic boss, unfair treatment. There’s also a gray area of intervention that some see as an extension of the parental advice and networking help that’s been happening for generations.

Rick Wainschel last year published a post on LinkedIn asking his network to help his daughter, a recent college graduate, find a corporate entry-level position.

Wainschel, a vice president at an automotive marketing technology company, says he doesn’t think his outreach qualifies as helicoptering. “Well, maybe a little,” he said, before quickly adding he was being half tongue-in-cheek. “It was really merely just to help her get a network established. I just think the work world is a challenging place.”

Wainschel’s post, which was OK’d by his daughter on the condition he didn’t embarrass her, didn’t lead to a job but did result in productive conversations, he said. She found a job with a credit union on her own shortly after.

Recruiters and other HR types say aggressive parental involvement signals a lack of independence and raises fears that mom and dad will be checking in regularly if their kid gets hired.

What’s more, they say, such interference rarely, if ever, works.

The phenomenon is becoming so commonplace it made the agenda of human resources organization SHRM’s national conference in June. When James Harrell asked a room of 250 professionals if they ever had a parent calling on behalf of a young employee or coming to an interview, more than half raised their hands.

“The first time it happened to me, I got high up on my soapbox and I shook my fist,” Harrell says. “The 15th time I said, ‘OK, well, I gotta figure out how to do something differently.’”

Harrell helped run an apprenticeship program for high-school students while he was the human capital management chief for the San Antonio Independent School District. To run interference, the district introduced a “signing day” when parents could come and ask questions.

After a Gen Z employee at Nation’s Best Holdings, a chain of hardware and home goods stores, didn’t get an “exceeds expectations” designation on his performance review last year, HR chief Amber Little got a call asking why.

Amber Little
Amber Little Amber Little

It was one of a number of calls from parents her office has picked up recently about issues ranging from negative feedback to understanding which health insurance plan to choose. Little has even noticed parents are now calling in sick for their adult kids.

“Instead of coaching them, they do it for them,” Little says. When it happens, she adds, “we encourage them to tell their child to come talk to us and we will walk them through it.”

A Zety survey of more than 1,000 Gen Zers found 20% had a parent attend a job interview with them.

“You get a sense it’s all hands on deck for some families,” says Keith Wolf, managing partner of recruiting firm Murray Resources in Houston. His office has received emails from parents seeking jobs for their children, and Wolf says he’s always wondered if the kids even knew.

Paul “PB” Branson, who graduated from the University of Missouri-Columbia in May, bristles at the thought. The 22-year-old says while he understands their anxiety, parents shouldn’t be joining their children’s job interviews or contacting employees on their behalf.

“That trend,” he says, “has really hurt my generation by creating this kind of stereotype that we need our hands held.”