Analysts downgrade Apple stock, cite Foxconn deceleration

By on Mar 16, 2011 at 10:10 AM
mobile March 16, 2011

Despite ballooning revenues and a record of kick-ass quarterly reports, Apple’s stock has been downgraded from “market outperform” to “market perform” by JMP Securities. The firm said that it made the choice based on the “notable deceleration in [Apple's] primary manufacturing partner Hon Hai (Foxconn) that was emerging even prior to the amplified uncertainty created by developments in Japan.” JMP Securities suggested that Hon Hai’s sales decelerated from 84% year on year in December to 37% in January — then decelerated yet again to 26% in February. As a result, JMP Securities is also dropping its Q2 2011 revenues estimates from $23 billion to $22 billion.

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21 Comments

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  • Bringit

    from “market outperform” to “market perform”. For Apple that’s a downgrade.

    • sirpaul

      I’m really confused at your comment. It really is a downgrade – read the title? “from “market outperform” to “market perform”” means downgrade for all of us, not just Apple.

      • serpentor

        What are you talking about?

      • sirpaul

        Bringit’s comment doesn’t make sense – i don’t understand what he’s getting at.

  • http://www.jeffreychew.com Jeff Chew

    Steve Jobs SMASH!!!

    • Anonymous

      So true. Apple’s down nearly 3%! Goofans (aka Apple Haters) predict Apple will go down 50% before the day is over. In addition, Google, who does use Foxconn to make its products, will go up 100%!

      • Michael Scrip

        Google makes software…

      • Anonymous

        That’s what you think! Google makes EVERYTHING. By the way, I meant Google DOES NOT use Foxconn. They use other companies for manufacturing.

      • Anonymous

        Google can burn

  • Scott

    It’s pretty pathetic that our entire economy is run off of people’s “thought’s and feelings”, rather than facts! And that has nothing to do with Apple. Just look at the price of oil. It’s too bad the quake didn’t happen right under washington. Those old bastards need to get OUT of office.

    • 9th ‘berry and counting

      I concur. Watch “Inside Job”. I just did a few weeks ago and am surprised at how many of those people who did things based on their “feelings” rather than acknowledge the facts are still in office.

    • Codespiro

      I second that. It’s all speculative and not realistic now-a-days it seems. Some people are just trying to be a step ahead by making wrong predictions for their investors

  • Anonymous

    It’s nice to see a firm use at least some logic in their decision to “downgrade” a stock. Not sure if this truly affects Apple’s bottom line, but this seems more a data call then a gut call.

    • Anonymous

      That’s so right! We, Goofans (aka Apple Haters) believe that Analysts that make negative comments about Apple do so with data but when they make positive comments, they are kissing Apple’s butt.

      • Anonymous

        Oh shut up.

        The point of us post was that many times analysts DON’T use hard numbers to release these recommendations… and that’s not just on Apple. My favorite is the “X number of iPad’s will be sold this quarter” like they have a damn clue seeing as Apple hasn’t released any sales data yet.

        And before you start calling me an “Apple Hater” I own an iPhone 4, iPad and two iPods so get over yourself.

      • Anonymous

        You are literally to stupid to insult!

        Sorry, couldn’t resist. :-)

      • Anonymous

        If there was ever a need for an ignore button…

      • Anonymous

        Do you disagree?

  • Anonymous

    Or maybe the ANALysts want to make a crapton of money when Apple releases the sales figures for the iPad2.

  • Anonymous

    Whoa, whoa, whoa. Foxconn’s profits are decelerating, and Apple gets the shaft?

    Did the guy also downgrade all the other dozens of companies that have their products manufactured by Foxconn?

  • dwinsmith

    I guess they forgot that Foxconn makes things for many other companies too and Apple might not be the reason at all…

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