According to reports, Apple's all-glass iPhone was halted due to low yield rates. Six Wall Street institutions are simultaneously bearish on Apple

Jefferies analysts pointed out in the report that, based on supply chain investigations, Apple has canceled the all-glass iPhone models originally scheduled for release in September 2027. The core selling point of this model is its seamless integrated glass body. It is estimated that if this model is launched as scheduled, the combined average retail price is expected to reach $2,060 (about 13,900 RMB), far exceeding the current iPhone 17 Pro Max's starting price of $1,199.

The direct reason for the cancellation was the low production yield. The all-glass body places extremely high demands on molding processes, strength control, and assembly precision. According to industry sources, the persistently low yield rate in mass production will significantly increase the overall production cost. When large-scale mass production is required, this design cannot meet production requirements. More importantly, Apple originally planned to extend the all-glass design to future Pro and Pro Max models to continuously drive up average selling price and profit margins. Jefferies has lowered its average price growth forecast for the iPhone from 9% to 6.8% for the fiscal year 2026–2031. This means that the cancellations are not just about one model, but a path that continues to drive up the price of Apple phones.

This is already the sixth Wall Street firm to give Apple a "Sell" rating, tying the highest level since 2012. But on the same day, renowned Bloomberg tech reporter Mark Gurman, citing sources, reported that Apple's product roadmap "has not changed" and still plans to launch a major facelift with glass design in 2027.

The contradiction between the two sets of information may lie in the different definitions of "full glass." Jefferies may refer to the ultimate solution: "the middle frame + back cover are all glass, with no metal frames." Bloomberg describes a solution where "both the front and back are made of glass, with a metal frame in the middle." The former was canceled, the latter is still pushing forward, and the two do not necessarily conflict. As of press time, an Apple spokesperson declined to comment.

Wall Street is systematically repricing Apple

Currently, six institutions have given Apple a 'sell' rating, matching the historical high from 2012. Apple's overall recommendation score is only 3.88 out of 5, the lowest level since 2019. The proportion of analysts recommending a buy has dropped below 60%, sharply contrasting with Microsoft, Amazon, and Nvidia, each exceeding 90% of buy-recommendation ratios.

The cancellation of the all-glass iPhone happened precisely against two highly unfavorable macro backdrops for Apple.

First, the cost of memory chips is soaring. Morgan Stanley analysts point out that the average cost of Apple's DRAM is expected to rise by about 370% between fiscal years 2025 and 2027. Apple has recently raised the prices of MacBooks and iPads as a result. The all-glass iPhone was originally Apple's key weapon to hedge against rising component costs and maintain gross margins, using higher-priced models to absorb higher expenses.

Second, foldable iPhones may just be "niche products." Jefferies believes that after the full glass model is discontinued, foldable iPhones will become Apple's "only key driver" for increasing average selling price and profit margins. However, analysts remain cautious: high memory chip prices could push the iPhone 18 Fold to $2,199 to $3,099. "Such an expensive phone would be a niche product," making it difficult to bear the heavy burden of driving overall performance.

All-glass iPhones have been canceled→ high-end models are missing→ average selling price growth is slowing→ gross margins are under pressure→ and profit expectations are lowered. Combined with rising memory chip costs, the possibility of foldable screens becoming niche due to overpriced foldables, and the slow pace of Apple Intelligence's promotion, multiple pressures are accumulating simultaneously, and Wall Street's pessimistic logic is coherent.