A WALL STREET FIRM has downgraded Apple's stock amidst speculation for slowing growth after the earthquake in Japan last week.
Alex Gauna of JMP Securities downgraded the stock on Wednesday, which saw Apple shares lose roughly $14 billion in market value, according to Reuters.
The downgrade put Apple at "market perform" rather than its previous mark of "market outperform". A primary factor in the decision was slowing growth at Hon Hai Precision Industry, otherwise known as Foxconn, which is a major supplier of parts to Apple. Its year over year sales growth dropped from 84 per cent in December 2010 to 37 per cent in January and just 26 per cent in February of this year.
The situation in Japan is also a contributing factor, causing investors to speculate about the future of many firms. Gauna said that "Japan as a supplier matters". With several companies based in Japan struggling to cope, things could prove equally disastrous for the technology industry.
The fears over Apple's future led to big declines in its share prices on Tuesday and Wednesday, with the company's stock losing 2.3 per cent and 4.5 per cent, respectively. This is the largest drop in its share price Apple has seen in nearly nine months. µ
Tags: Apple
Apple will start to feel market response - the same market who embrace them will also ditch them as fast. They started to do gorilla marketing across many sectors and forced many people to make huge investments into products they don't really need - just to satisfy the shareholders demand for more and more. I was forced to use a iMac at work - Wintel was literally thrown out of the door and I was also forced to change a huge amount of software because my bosses thought they are doing the correct thing - to their dismay many of the so called superior products are now starting to fall apart and code don't work - guess what - our customers will not change! - they will simply go to another competitor.
Your stupidity is quite simple breathtaking lol
Dave there is no reason to get upset over the facts. I mean the simple fact is Apple has been making inferior products to most, if not all, of it's competition in any given market pretty much since the company started while generally charging quite a bit more, sometimes as much as several times more and it's only in the last couple years they've even tried to be price competitive. Proof of point the days before Apple decided to switch to more standardized hardware where you would have to wait 6-9 months after it launched for PC to get the latest low end graphics card and you'd have to pay premium performance card money for it. Point blank Apple customers tend to be idiots who have been brainwashed or they are fools who just don't know any better cause they choose to buy the first shiney thing they saw.
Since you're still probably gonna get upset allow me to point something else out - I said Apple customers are idiots, not Apple investors.
I've been listening to your crap since windoze 95. Enjoy the UI of all your chosen junk.
Bought 1500 AAPL at 9 bucks and 1200 at 50 bucks, I'll just go and check to see how they're doing.
Apple is only responsible for about 20% of Foxconn's turnover. There's no proven link between Apple sales growth and Foxconn turnover as the other 80% of Foxcon's business mask any changes.
I'm wondering what is the most important. Apple shares or the radioactiv plutonium cloud that is going to travel around the earth and contaminate as many living beings as possible?.
Sure Apple investors should be worried about what's going on in Japan but lets face it with the ever growing popularity of Android and the availability of devices running the various tasty flavors of said OS they have bigger things to worry about. I mean lets face it Apple's just launched Ipad 2 is inferior to the Galaxy Tab 10.1 and Motorola Xoom in virtually every respect and the Iphone 4 is inferior to even the Galaxy S let alone the upcoming Galaxy S II along with many other Android phones.
Then there is the issue Apple is gonna have with trying to flog their full size ipod products now that Archos, Creative, Philips, Samsung, etc... are making similar Android powered devices for the same or less money. Sure there are advantages anyway you go such as Apple's got better build quality and a nicer screen then Archos but for about 15% less Archos gives you a bigger screen, a more powerful processor (same processor but the iPod is underclocked), better camera, better multimedia support and industry standard connectors.
I've always wondered why people buy Apple products when there are better alternatives but happily people finally seem to be waking up to the fact that while buying Apple makes you trendy it also generally makes an idiot.