Apple shares hit Japan quake-Times of India

LOS ANGELES/SAN FRANCISCO: rare Wall Street stoked belittling the concerns that Apple Inc. 's hot growth is slowing and sent its shares sliding for the second straight day as nervous investors Ponder largest impact on the tech industry from Japan earthquake.

The largest company in the world lost about 14 billion dollars from Wednesday after JMP Securities Alex Gauna downgraded shares, leading to a sharp pullback in sales growth in Apple's largest Asian contract manufacturer as a sign that business also slows down on the iPhone and iPad manufacturer.

"There is a risk of complacency. Sell side has gotten the game one-upmanship Gauna, "he said. Investors "should make sure that they are comfortable with the situation ... in particular because there are so many uncertainties right now."

He added: "we know that in Japan as a supplier of it depends." Apple shares slide – the largest one-day loss of nearly nine months--comes amid uncertainty about the impact of the largest earthquake to hit Japan.

Accounts for 6 percent of the sales of the Apple and is the main source of components for its screen, many analysts said sufficient influence Apple reins and a good enough record to ensure important components – so far.

The company, which last week launched its iPad 2 tablet on the crowds of fans outside of their shops, lost nearly $ 22 billion in the value of more than two days.

Gauna downgraded Apple performed "market" from "market outperform," based on signs of a serious slowdown in the growth of sales on the Hunt Hai Precision Industry Co., Ltd, a contract manufacturer and a subsidiary of Foxconn, which is heavily dependent on the business of the company Apple.

Includes Apple in less than one year, is among only five analysts at Thomson Reuters 54 I/B/E/S with "sell", "hold" or "neutral" rating on the stock market, which is a perennial gold and underpins the global portfolio

In apparent response to the report, said an analyst at Oppenheimer Gauna Yair Reiner Apple contribution hunt Hai revenue--about one-fifth of – was "limited" and the light of attempts by the correlation of their performance.

Ticonderoga analyst Brian White said the shift towards iPad 2-by 11 shops. March – meant a gradual ramp down the original iPad production, which in turn could take the air out of the sails, the Hon Hai.

There was a sale
JMP said sales growth year-over in the Hunt Hai slowed in December from 84% to 37% in January and 26% in February.

Before this week's sale doubled the price of the shares of Apple during 18 months. Apple declined to comment on the downturn. Wall Street is accustomed to Apple's own sales estimates from the water. But he warned that stocks Gauna large technology companies, was the last serious'm on punishment for missing financial estimates.

Nervous, analysts worry about years of Stellar technology giants such as stock prices, Apple would Tumble back to Earth, in particular the intensification of competition for its most popular products, from iPhone to iPad. It is expected that the Tablet sold 1 million units since its launch Friday.

Some of the top hedge fund manager to reduce its shares in Apple and Google Inc. in the fourth quarter, according to a survey Thomson Reuters filings "smart money", some of the largest shares of hedge funds.

But the analyst Walter Piecyk BTIG said that demand for iPad 2 proved strong enough – so far – keep kind of a rip-roaring growth Apple is known.

"On the last weekend showed once again Why Apple makes more than 50% growth. The rows for the iPad 2 extended longer than for the iPhone 4, "he said.

But with the robustness of the global tech supply chain, the investors can choose to play for the safe, now with Apple, analysts say.

Japan is a major source of glass, used by Smartphones and tablets and is home to about one-fifth of the world semi-conductor production. The Japanese factory, producing everything from chips on car parts are closed after the earthquake and the tsunami last week threatened the supply to manufacturers around the world.

Uncertainty about Japan comes as opponents of the Google Android smartphone, its software, Motorola and its tablet Xoom, begin to vie for the attention of the same crowd that buying iPads and iPhones.

"This problem will have far-reaching implications across many leading Tech (producers), and Apple is also in danger," he wrote, the White. But "Apple has enough pull in the supply chain, due to their size, offer agreement with breach of payments and the success of their products to obtain more than the supplier's market share of the output."

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