Apple Inc. (AAPL) shares fell approximately 1.3% in pre-market trading. Jefferies analyst Edison Lee downgraded the stock from Hold to Underperform. Lee lowered the price target from $285.56 to $263.66.
A supply chain survey indicates Apple canceled plans for a premium all-glass iPhone. Low production yields reportedly forced the cancellation. This decision impacts Apple's strategy to increase margins through high-priced models.
Rising memory chip costs for the upcoming iPhone 18 series further pressure the growth outlook. Shares also traded ex-dividend for a $0.27 quarterly payment on the same day.