Key Stats for Apple Stock
- Price change for Apple stock in the last 6 months: 12%
- $AAPL Stock Price as of Aug. 10: $308
- 52-Week High: $345
- $AAPL Stock Price Target: $322
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What Happened?
Apple (AAPL) stock slipped on Monday after Jefferies downgraded shares to underperform from hold. The firm’s supply chain checks suggest Apple has scrapped its 20th-anniversary all-glass iPhone model because of poor production yields.
Analyst Edison Lee said this is a bad sign. It shows Apple is struggling to raise iPhone prices through new designs, something the company badly needs given rising costs.
That leaves the foldable iPhone, expected next month, as basically the only thing that can lift prices and margins going forward.
But Lee warned that surging memory chip costs will likely push that device’s price so high it ends up being a niche product rather than a mainstream hit.
Backing this up, research firm TrendForce said the materials cost for the 256GB iPhone 18 Pro will jump about 38% compared to last year’s model.
Most of that increase comes from soaring memory prices, not the new 2-nanometer chip technology Apple is using. TrendForce expects costs to climb even further in 2027 if memory prices keep rising.
Jefferies now joins a growing list of Apple bears.
Six firms currently rate Apple stock a sell, tying the highest count since 2012. KeyBanc made a similar move last month, downgrading Apple stock to underweight over demand and valuation worries.
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What the Market Is Telling Us About Apple Stock
The pullback in Apple stock reflects growing unease about how the company will keep growing iPhone prices without a clear new hardware story.
Wall Street had been hoping a fresh iPhone design could justify higher price tags, especially with memory costs eating into margins. With that plan reportedly shelved, all the pressure now falls on the foldable iPhone, a product that may be too expensive for most buyers anyway.
This downgrade also comes right after Apple’s quarterly results, where the company gave a weaker sales forecast due to component shortages.
Combined with the shrinking share of analysts recommending the stock, this signals real doubt about Apple’s near-term growth story, even as the stock has just come off record June quarter revenue.
Investors seem to be weighing tough questions: can Apple pass rising costs onto customers, and is that foldable iPhone really going to move the needle?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
