Apple's Cancellation of All-Glass iPhone Deals Blow to High-Price Strategy

Apple has canceled the launch of its "all-glass iPhone." U.S. investment bank Jefferies announced on the 10th (local time) that the product, which was expected to sell for $2,060, failed to reach a level viable for mass production. Based on supply chain investigations, Jefferies assessed that Apple's high-price strategy—aimed at raising the Average Selling Price (ASP) by introducing a new form factor for the 20th anniversary of its smartphone market entry—has suffered a setback. The all-glass iPhone was known as the model closest to the 'single-sheet-of-glass smartphone' concept long envisioned by former Chief Design Officer (CDO) Jony Ive. The device, targeted for release next September, was expected to have an average selling price more than double the starting price of the current top-tier iPhone 17 Pro Max.

Following the all-glass model, Jefferies diagnoses that the foldable iPhone—cited as another high-price strategy card—will also remain a niche product rather than achieving mass market success. This is because the rising price of memory semiconductors is leading to higher product prices, potentially raising the barrier to entry for consumers. Edison Lee, an analyst at Jefferies, analyzed that depending on storage capacity, the price of the upcoming foldable model could range from a minimum of $2,199 to a maximum of $3,099. The rise in component costs is becoming a burden across Apple's entire supply chain. Morgan Stanley analyst Eric Woodring stated in a recent report that Apple's average DRAM purchase cost is projected to surge by 370% between the 2025 and 2027 fiscal years.

Amidst this, Bloomberg reported, citing sources, that Apple's design overhaul work has not been completely halted. Apple is reportedly still considering a new design utilizing glass for both the front and back for next year's iPhone Pro models. Known internally as 'V73' and 'V74,' these models are expected to feature curved sides while maintaining a metal band in the center to preserve the device's structural rigidity. The completely metal-free glass finish version, originally led by Apple's design studio, was reportedly scrapped in the early stages after failing to solve technical challenges related to connecting glass panels during mass production. However, Apple is said to have shifted direction to maintaining the existing framework while increasing the use of glass materials to create a visual change. Testing for the 2027 model is reportedly already in an advanced stage.

On this day, citing supply chain investigations and cost increase pressures, Jefferies downgraded its investment opinion on Apple stock to 'Underperform' and set a target price of $263.66. The suggested target price implies potential for a further 14% decline from the day's closing price. Apple stock ended the day at $308.26, down 1.5%.