Apple scraps all-glass iPhone due to production issues

Apple has pulled the plug on what was supposed to be its most ambitious iPhone redesign in years. The all-glass iPhone, originally slated to debut in September 2027 as a celebration of the device’s 20th anniversary, has been canceled due to persistent manufacturing problems that made mass production untenable.

The news comes courtesy of Edison Lee, an analyst at Jefferies, who confirmed through supply-chain checks that the redesign is dead. On the same day the cancellation surfaced, Jefferies downgraded Apple’s stock from “Hold” to “Underperform” and slashed its price target from $285.56 to $263.66.

What Apple was trying to build

The canceled design was genuinely radical by Apple’s standards. Gone would have been the Dynamic Island, the notch, and every other visual interruption that’s become a hallmark of modern iPhones. In their place, Apple planned to use under-display Face ID and camera technology, embedding the sensors beneath the screen itself.

Bloomberg first reported on the redesign back in 2025, and by mid-2026, reports were circulating that suppliers had started retooling factories in preparation.

The yield problem

Manufacturing ultra-thin curved glass at scale is, to put it mildly, really hard. The core issue came down to production yields, which is the percentage of units that come off the assembly line without defects. When yields are low, costs skyrocket and timelines collapse.

Despite months of preparation by suppliers, the yields never reached acceptable levels. Rather than push forward with a design that would either limit supply or inflate costs, Apple chose to walk away entirely.

What Jefferies is worried about

The downgrade to “Underperform” wasn’t just about one canceled product. Edison Lee’s move reflects a broader anxiety about Apple’s ability to innovate in a smartphone market that’s become brutally competitive. The reduced price target, from $285.56 down to $263.66, suggests Jefferies sees softer margins and slower iPhone sales growth ahead.

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