Your favorite Apple, iPhone, iPad, iOS, Jailbreak, and Cydia site.
iPad Newsforums, a part of the
03-16-2011, 11:51 AM #1
Foxconn Slowdown Portends Trouble for Apple, iPad 2 Production
The reported slowdown in production at the Foxconn facilities in China is not only sparking concerns about further iPad 2 supply shortages, but also spooking Wall Street Analysts, some of whom are now downgrading shares of Apple to "market perform." Just this morning JMP Securities analyst Alex Gauna downgraded Apple from “market outperform” - a rarity in recent years on Wall Street.
According to a note to investors, Gauna made the downgrade projection based on what he's hearing about Foxconn. Subsequently, Gauna says he made the call “to reflect risk associated with the notable deceleration in its primary manufacturing partner Hon Hai (Foxconn) that was emerging even prior to the amplified uncertainty created by developments in Japan.”
We don’t know the source of the Hon Hai deceleration, but possible causes could include simply in-line iPhone sales due to more significant Android competition, weakness in computing products as tablet demand grows, and/or product transition risk around the iPad 2. While we see Apple’s five-year track record of upside surprises (averaging 23%) and YTD outperformance (AAPL +7.1% vs S&P 500 +1.9%) as exposing the stock to near-term downside risk towards its $300 [200-day moving average].
Source: Wall Street Journal
03-16-2011, 11:56 AM #2
03-16-2011, 12:00 PM #3
Apple will solve this fast.
03-16-2011, 12:11 PM #4
Hope it's back up to speed in time for iPhone 5.
03-16-2011, 12:12 PM #5
Be glad the factory didn't get swept by the tsunami. That would stop production completely.
03-16-2011, 01:12 PM #6
Summary: Apple will be pushing them to do more, but in the end, it's all on Foxconn's ability to manage this bottleneck.
Me? I'm glad I'm totally content with my iPad 1 or I'd be very anxious right now. iPad 2's are going on eBay for 2x their asking price.
03-16-2011, 01:15 PM #7
03-16-2011, 01:43 PM #8
03-16-2011, 01:50 PM #9
How can an analyst be so misinformed? It's so stupid that it sounds fishy.
03-16-2011, 02:00 PM #10
Patience! And as far as Apples shares... everything on Wall Street is down right now...
"Always remember your special and unique!"
03-16-2011, 02:22 PM #11
I don't believe there is anything to solve...Wall Street already predicted 300,000 iPad 2's to sell upon launch...APPLE crushed that haha! These stories are funny to me. They are opinions just like our responses...treat them as such :]
03-16-2011, 02:56 PM #12
03-16-2011, 04:52 PM #13
03-16-2011, 05:11 PM #14