Why Apple Stock Just Got Downgraded to Sell

Apple AAPL -1.53% stock was downgraded by a major Wall Street firm on Monday, as an analyst predicted that a radical iPhone redesign has been scrapped.

Jefferies analyst Edison Lee cut his rating on Apple to Underperform—generally graded as a moderate Sell rating—from Hold. He also slashed his price target to $263.66 from $285.56, placing it among the lowest on Wall Street.

The downgrade hinges on the suspected cancellation of Apple’s all-glass iPhone. Although the project was reported to be in development as far back as 2025 and rumored to launch as early as 2027, Apple never commented on the speculation. However, the company quietly filed a patent application for a “six-sided glass enclosure” in 2019.

While Jefferies once viewed the release of an all-glass iPhone as plausible, Lee believes development has come to a halt. According to the analyst, supply-chain checks suggest the project was canceled due to “poor production yield.” This refers to the percentage of defect-free units successfully generated during manufacturing.

Lee views the decision as “a major setback to efforts to bring in higher-priced iPhones amid soaring memory costs.” Had it launched in September 2027 to commemorate the iPhone’s 20th anniversary, the device would have carried an estimated blended retail price of $2,060—higher than the average price of any previous model.

“More importantly, we believe 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,” Lee wrote. He believes an all-glass model would have been a crucial defense against soaring memory costs, warning that Apple otherwise faces lower prices for years to come.

In the same breath, the analyst provided a conservative outlook on both Apple’s AI strategy and component costs for the iPhone 19 Pro Max, which is slated for release in 2027. Other supply-chain checks suggest that Apple is considering an upgrade for the iPhone 19 Pro Max, potentially increasing its memory to 16 gigabytes from 12 gigabytes.

In Lee’s view, the slow rollout of Apple Intelligence makes it difficult for Apple to justify the expense of equipping its phones with more memory. Extra RAM is needed to run complex AI models directly on a device.

Apple shares dropped 1.5% on Monday as the tech-heavy Nasdaq Composite COMP -0.32% index fell 0.3%. Heading into the session, Apple had gained over 15% in 2026, marginally outperforming the index.

The stock’s momentum stalled last month when underwhelming fiscal third-quarter earnings triggered a selloff that erased $359 billion in market capitalization, allowing Nvidia NVDA -2.86% to overtake Apple as the world’s most valuable company.

Lee isn’t the only analyst to sour on Apple stock in recent weeks. KeyBanc analyst Brandon Nispel downgraded shares to Underweight from Sector Weight in July, arguing that Apple’s growth was beginning to stall following a boost in 2025. Sluggish iPhone sales could drag down other hardware categories, Nispel wrote, making the stock look “too expensive” over time.

Even with this recent shift in sentiment, Wall Street hasn’t lost faith in Apple. Of 51 analysts surveyed by FactSet, 32 rate the stock a Buy or the equivalent. Fourteen maintain a Hold rating, while just five—Lee and Nispel included—have issued a negative opinion on the shares.

Singapore’s Formula 1 weekend has always looked different.

Held beneath floodlights on the Marina Bay Street Circuit, the race transforms the city into a nocturnal spectacle of speed, heat and saturated colour. It is this distinctive atmosphere — and one of Singapore’s most important natural symbols — that has shaped IWC Schaffhausen’s latest motorsport-inspired watch.

The Pilot’s Watch Chronograph 41 Mercedes-AMG PETRONAS Formula One Team Edition introduces a deep purple dial to IWC’s Pilot’s Watches collection for the first time.

Rather than drawing directly from the race cars, the colour references the Vanda Miss Joaquim, the orchid recognised as Singapore’s national flower. Its vivid purple is paired with numerals, hour markers and luminous hands in the turquoise-green shade closely associated with the Mercedes-AMG PETRONAS Formula One Team.

A matching purple rubber strap completes what is easily the most colourful team watch IWC has produced during its long-running Formula 1 partnership.

A team watch made for the paddock

IWC has been the official engineering partner of the Mercedes-AMG PETRONAS Formula One Team since 2013, with dedicated team watches forming part of the relationship since 2022.

These editions are intended to be worn by mechanics, engineers and other team personnel trackside, as well as staff at the team’s headquarters in Brackley, England. That working role helps explain why the watches tend to prioritise low weight, durability and legibility rather than simply adding Formula 1 branding to an existing luxury timepiece.

For the new reference, IW388121, IWC has selected a 41mm case made from Grade 5 titanium. The metal is approximately half the weight of steel, resistant to corrosion and valued for its strength-to-weight ratio.

Its connection with motorsport is functional as well as thematic. Titanium alloys are used in Formula 1 components subjected to considerable mechanical and thermal loads. Most visibly, the protective Halo structure positioned above a driver’s cockpit is also manufactured from a high-strength titanium alloy.

IWC has given the case a brushed finish, retaining titanium’s understated grey appearance and allowing the purple dial and green details to carry the visual impact.

At 14.5mm thick, this is still a substantial sports chronograph. The reduced weight of the titanium case should, however, make it noticeably easier to wear over a full day than an equivalent steel model.

Familiar engineering beneath a new dial

Behind the colour is a familiar and proven mechanical package.

The watch is powered by IWC’s automatic 69385 calibre, an in-house chronograph movement built around a traditional column wheel. It operates at 28,800 vibrations per hour and provides a 46-hour power reserve.

Its chronograph layout places the elapsed-minute display at 12 o’clock and running seconds at six. The vertical arrangement has been a defining feature of IWC’s Pilot’s Watch chronographs for decades, keeping the displays clear despite the amount of information presented on the dial.

A combined day-and-date window sits at three o’clock, giving the watch additional everyday usefulness beyond its stopwatch function.

The movement is decorated with Geneva stripes and circular graining and can be viewed through the sapphire crystal caseback. Water resistance is rated to 10 bar, equivalent to approximately 100 metres.

The front is protected by convex sapphire crystal with anti-reflective treatment on both sides. IWC also secures the glass against displacement caused by sudden changes in air pressure, a feature associated with the collection’s aviation origins.

The purple rubber strap is fitted with IWC’s EasX-CHANGE system, allowing it to be removed without conventional tools. A titanium pin buckle maintains the lightweight construction.

The fourth Mercedes-AMG PETRONAS team watch

The purple chronograph is the fourth official team watch produced through the partnership.

The series began at the 2022 Miami Grand Prix with a titanium Pilot’s Watch Chronograph 41 distinguished by PETRONAS-green details. A more performance-focused Ceratanium chronograph followed at the 2023 Las Vegas Grand Prix, complete with a black ceramic tachymeter bezel.

In 2025, IWC changed direction with the slimmer, three-hand Pilot’s Watch Mark XX Mercedes-AMG PETRONAS Formula One Team Edition.

The new Singapore-inspired chronograph returns to the original 41mm format but gives it an unexpectedly expressive identity. It also arrives alongside a new Mercedes-AMG PETRONAS collection from team kit supplier adidas, extending the purple colour story beyond the watch.

For collectors, the appeal lies in that balance. The architecture of the watch is recognisably IWC: practical, engineered and highly legible. The dial, meanwhile, is considerably more adventurous than the black, blue and green treatments typically associated with modern pilot’s watches.

It is a tribute to Singapore that avoids obvious images of the skyline or circuit. Instead, IWC has used colour to capture some of the energy of Formula 1’s original night race — and created one of the partnership’s most distinctive watches in the process.

Fact box

Model: IWC Pilot’s Watch Chronograph 41 Mercedes-AMG PETRONAS Formula One Team
Reference: IW388121
Case: Grade 5 titanium
Diameter: 41mm
Thickness: 14.5mm
Dial: Purple with PETRONAS-green numerals, markers and luminous details
Crystal: Convex sapphire with anti-reflective coating on both sides
Movement: IWC-manufactured automatic calibre 69385
Functions: Hours, minutes, small seconds, chronograph and day-date display
Frequency: 28,800 vibrations per hour, or 4Hz
Power reserve: 46 hours
Jewels: 33
Water resistance: 10 bar, approximately 100 metres
Strap: Purple rubber with EasX-CHANGE system
Buckle: Titanium pin buckle