With latest Wall Street downgrade, Apple now has the most ‘Sell ratings since shortly after Steve Jobs’ death

Apple is facing cascading challenges. Its growth is slowing, surging memory prices threaten to erode its margins, and more financial institutions are souring on the company.

The latest hit came on Monday, as investment firm Jefferies downgraded Apple’s stock from “hold” to “underperform”—the equivalent of a “sell” rating—cutting its price target from $285.56 to $263.66. Jefferies analysts slashed the rating after checks on Apple’s supply chain indicated that the company had canceled a rumored all-glass iPhone expected to launch for the iPhone’s 20th anniversary next year, as well as ongoing struggles countering surging memory prices, and limited signs of progress in its AI efforts.

“We believe this shows that introducing new form factors in the iPhone to drive higher [average selling price] is more difficult than expected,” Jefferies analysts wrote in regards to the all-glass iPhone, which the firm had expected to sell for a premium. Apple’s expected foldable phone, which it may reveal next month, will be the company’s only margin driver, though memory costs are expected to increase the selling price of the phone to $2,199 for the 256 gigabyte version and $3,099 for the 2-terabyte version, the analysts estimated.

Several Wall Street firms have now posted the equivalent of a sell rating for Apple. Bloomberg estimated that at least six firms have made the move, matching a 2012 high, shortly after the death of founder Steve Jobs. In July, KeyBanc Capital Markets lowered its valuation to underweight due to concerns about iPhone demand.

Apple shares have struggled since the company revealed in late July that sales of the iPhone, which accounts for roughly half of its business, will grow at a “mid-teens” percentage rate during the current quarter, which would be a significant deceleration from the 22% growth the iPhone business posted in the recently ended quarter. Apple also said its gross profit margins will come under pressure in the current quarter.

The setback comes as John Ternus prepares to take over next month as Apple’s chief executive, succeeding longtime CEO Tim Cook. Apple is planning its annual iPhone launch event for early September, when it is expected to unveil its first foldable phone. Ternus, a longtime Apple executive, is taking the top role as Apple faces investor pressure related to its AI endeavors and whether Ternus can bring back some of the company’s old product design mojo, Fortune reported last month .

The cost of computer memory has been a thorn for Apple and other major tech companies. It’s the reason Apple recently raised prices on its Macs and iPads. Demand for memory chips in data centers being built to power AI is causing the shortage and sending prices soaring. The issue is also exacerbated because the DRAM memory chip market is largely controlled by three companies, Cook recently lamented: Micron , SK Hynix, and Samsung .

In response, Apple has reportedly been testing memory chips from China’s CXMT , an approach that could raise objections from the White House if Apple decided to move forward.

Apple aims to run more AI directly on users’ devices, an approach that Cook last month said he believes can appeal to privacy-minded users.

“The ability to run some percentage of requests on-device is also very strategic, sort of a competitive weapon if you will,” he said.

This story was originally featured on Fortune.com

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