Apple shares fall amid confusion over 2027 ‘all-glass’ iPhone plans; company clarifies, ‘design didn’t hold up,’ but…

Apple is still working on a glass-focused design for the iPhone’s 20th anniversary, people familiar with the matter told Bloomberg, refuting an analyst report claiming the plan had been scrapped.

Recently, Jefferies Analyst Edison Lee expressed his about the outlook for the company’s iPhone, especially Apple’s ability to drive higher average selling prices over time. Lee also downgraded Apple shares, saying the move would hinder efforts to offer higher-priced smartphones.

Following the report, Apple shares fell as much as 2.8% in New York on Monday. Apple shares have fallen about 8% from their recent peak as component shortages weigh on the company’s sales outlook.

What did Jefferies say?

Supply-chain checks indicate that the company “has cancelled the 20th anniversary all-glass iPhone model due to poor production yield,” he wrote. “This shows that introducing new form factors in the iPhone to drive higher ASP is more difficult than expected.”

A foldable iPhone, which Apple is expected to debut next month, “will now be the only key driver of higher ASP and margin” over the coming years, Lee wrote. However, skyrocketing prices for key components like memory chips will force a high price point for the product, and “we still believe such an expensive phone would be a niche product.”

How did Apple respond?

Refuting the claims, sources said the company expects to launch iPhone Pro models next year with a new glassy look.

Sources clarified that there was an extremely aspirational version, championed by Apple’s design studio, that used too much glass and less metal. But the company further researched and found problems with connecting the glass panels. The design didn’t hold up when Apple had to figure out how to produce it at large volumes. Finally, the model was scrapped.

Apple is currently working on a different iPhone design with glass on both the front and back. The glass will curve around the sides, with a metal band in the middle.

Though Apple’s vision for an iPhone with uninterrupted glass has proven challenging to execute, the company still expects to make a splash next year with an evolution of the original idea, according to sources.

What next?

Apple looks to keep that momentum going with next month’s iPhone updates. A new foldable version will be the biggest single change in the history of the product’s look. Apple is also slated to unveil iPhone 18 Pro and Pro Max models with major camera improvements. And it’s planning a new dark red colour that the company expects to generate some buzz.

In the spring, Apple plans to deliver the base-level iPhone 18 and an update to its lower-budget model called the 18e. It will also offer the second-generation version of its ultrathin iPhone Air at that time, according to people familiar with the plans. That device will get a second camera, a better processor and more battery life.

The iPhone is Apple’s biggest moneymaker, accounting for roughly half of revenue. It’s also been outpacing the rest of the company’s business lately, with sales climbing 22% last quarter.