Apple may no longer debut its all-glass iPhone next year, casting doubts on its ability to command more cash from its customers for premium products — a sign that investors should sell the stock, according to Jefferies. The investment firm downgraded Apple to underperform from hold. It also lowered its price target on shares to $263.66 from $285.56, suggesting nearly 16% downside from Friday's close. "The all-glass iPhone (Sep 27) has been canceled due to low yield," analyst Edison Lee said Monday in a note to clients, citing Jefferies' supply chain checks. "We view this as a major setback to efforts to bring in higher-priced iPhones amid soaring memory costs...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." Jeffries lowered its forecast for Apple's earnings per share by 2.1% for fiscal year 2028. The apparent cancellation of the 20th anniversary all-glass iPhone "shows that introducing new form factors in the iPhone to drive higher ASP is more difficult than expected," Lee wrote in his note. The analyst added that the rollout of the company's first foldable iPhone, which is slated to debut in September 2026, is the "only key driver of higher ASP and margin" in the near-term. However, surging memory costs, fueled by widening artificial intelligence adoption, could push the device's starting retail price north of $2,000, Lee said. That could make the foldable iPhone a particularly niche product, limiting its sales — a fact that may limit upside for Apple stock. Shares edged down more than 1% in pre-market trading on Monday. However, Apple is still up 15% year to date. Jefferies' call goes against consensus on Wall Street. Of the 47 analysts covering Apple, 30 have a buy or strong buy rating on the stock, LSEG data shows. Just three shops on the Street have an underperform rating.