Apple shares were down 0.97% in premarket trading after Jefferies downgraded the stock to "Underperform" from "Hold" and lowered its target price to $263.66 from $285.56, implying about 16% downside from last Friday's close. The brokerage said checks on Apple’s supply chain indicated the company had canceled a rumored all-glass iPhone planned for the iPhone’s 20th anniversary next year, a setback to efforts to use new form factors to lift average selling prices and margins. Jefferies said rising memory prices and limited signs of progress in Apple’s AI efforts added to the pressure, while the company’s expected foldable phone may be its only margin driver. The analysts estimated the foldable model could be priced at $2,199 for the 256 gigabyte version and $3,099 for the 2-terabyte version because of higher memory costs. The downgrade adds to a broader turn in Wall Street sentiment after KeyBanc Capital Markets moved to underweight in July on iPhone demand concerns, while Bloomberg estimated at least six firms now carry the equivalent of a sell rating on Apple, matching a 2012 high. Apple has also warned that iPhone sales growth in the current quarter will slow to a "mid-teens" percentage rate from 22% in the recently ended quarter and that gross profit margins will come under pressure.