Why Apple Stock Just Got Downgraded to Sell - Kanebridge News
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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.

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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.



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Apple’s first foldable, the $1,999 iPhone Duo, combines an iPhone and iPad Mini experience—but its size, weight and price come with compromises.

By Nicole Nguyen | Photography by Alexander Hotz for WSJ
Thu, Sep 10, 2026 4 min

As I watched a Netflix show on Apple’s first foldable, the iPhone Duo, I had two surprising thoughts.

The first: Maybe I don’t need my iPad Mini anymore.

The second: Uh oh, am I about to spend $1,999 on a phone?

I didn’t think folding phones were for me. I’ve been testing Android versions from Samsung and Google since 2019, and those early editions came with too much screen and too many compromises.

Fast forward seven years, and the technology has come a long way. Apple—in its very Apple way—has also come up with some hardware and software trickery to make up for some shortcomings of the basic design. My desire for a folding phone before today was zero. After today, it’s a lot more than zero.

I’m not ready to recommend the Duo, which ships on Oct. 23, just yet. Not until I am able to test it more fully, so be on the lookout for that review in a few weeks. But from what I experienced at Apple Park on Wednesday, I could actually picture myself using this new half-phone, half-tablet hybrid.

Crease camouflage

Nicole Nguyen holding the new iPhone Duo.
When opened, the Duo’s exterior screen goes dark.

Nicole Nguyen holding the iPhone Duo with a pink, feathery image on the screen.
The interior screen is almost as spacious as the display on an iPad Mini.

For months, I’ve been using Samsung’s Galaxy Z Fold 8, a similarly squat, passport-shaped foldable that opens up to a larger screen. It’s impressively thin and can easily fit into the infuriatingly tiny pockets in women’s pants and dresses. Samsung did a lot of work to minimize the crease—the dip between the two halves of the big interior display—but it’s still clearly there.

When I held the iPhone Duo open, the crease was barely visible. As I slid my finger across the display, I could feel it, but it’s more subtle than Samsung’s. Most of the time, the screen looked as flat and smooth as the one on an iPad.

Apple employed both software and hardware techniques to camouflage the crease. The matte surface of the interior 7.6-inch screen minimizes reflections to hide it. (Samsung’s Fold 8 screen is shiny.)

And as you begin to open or close the iPhone Duo, the interface shifts the controls and content away from the center crease. If, say, you’re watching a video on the outer screen, you can open the Duo to switch to the bigger display within. A black fade marks the transition. You don’t see the video full screen until the phone is completely flat.

Heavy handed

Apple iPhone Duo foldable smartphone closed.
When closed, iPhone Duo has a chunkier shape than traditional iPhones, with a new interface layout. David Paul Morris/Bloomberg News

My second observation was that, when the Duo is closed, in phone mode, it was harder to use one-handed than I expected.

In the keynote trailer and press release, Apple touted how thin the Duo is. It’s marketed as the thinnest iPhone ever—when open.

But it’s actually thicker and heavier than most of its Android competitors. The Duo weighs 254 grams, and is 11.3 millimeters thick when closed. The Samsung Galaxy Fold 8 is just 201 grams, with a thickness of 9.7 millimeters. Google’s Pixel 11 Pro Fold is 239 grams and 10.1 millimeters.

Because the Duo is also wider than a standard iPhone, I found it quite a challenge to type.

I admit, I do have smaller-than-average hands. So I consulted my colleague Rolfe Winkler, who has a larger grip. He agreed the Duo feels big.

Apple rearranged the interface on the outer screen so it looks different than traditional iPhones. The dock and control center are off to the right to be more reachable. Committing to the Duo as your main device will require adjustments in your handling. You will have to learn a new way to use and type.

Work and play

Nicole Nguyen holding the new iPhone Duo.
When half-folded, the Duo resembles a little laptop, complete with keyboard.

My most surprising takeaway? I feel a pull toward this device.

I always thought that combining an iPhone and an iPad would mean bigger compromises. The battery life is about the same as the 18 Pro (up to 24 hours of “regular use” on a single charge), though I’ll need to verify that in my real-world testing. And it’s also as durable, with the same IP68 dust- and water-resistance rating as the rest of the iPhone lineup.

There are trade-offs, for sure. Trying out the camera, I immediately missed the 8X zoom in my Pro model. The Duo has just 2X zoom, which wouldn’t cut it for the dozens of pictures I take of my kid every day.

But the dual screens unlock new photo functionality. You can see what your shot looks like from the outside screen. As someone who has tried tirelessly to self-direct a family photo—or a spouse—I am very eager to try this out more.

Foldables, I initially thought, were for classic mobile-warrior jet-setter types, who never sit at a desk and are always on calls. For that crowd, the Duo can run two apps side-by-side.

Me, I’m more of a bed binge-watcher and ebook reader. That’s what my beloved iPad Mini is for.

Watching videos on the Duo is a nice experience—nice enough that you forget the screen is 0.7 inches smaller than the iPad Mini’s. The main screen is also a 4:3 aspect ratio. Very similar, by the way, to the IMAX edition of the Odyssey.

Because I wasn’t able to snag a ticket to one of the sold-out screenings, I will be watching Christopher Nolan’s version of Homer’s epic on the Duo, just as the director intended. (Just kidding! Sort of.)

The Duo costs $800 more than an iPhone 18 Pro, and I’m not sure I want to spend that premium on a first-generation Apple device. But I’m not ruling out the idea that a Duo might one day be in my future. Stay tuned for my full review.