J.P. Morgan dents Apple stock with bad info

Looks like J.P. Morgan’s Gokul Hariharan made a small error in his analysis of Apple’s iPad-based fortunes when he reported a 25% drop in iPad orders among Foxconn factories in Asia. Apple (AAPL) shares took a sharp downturn after the word was out, but both Hariharan and traders forgot one thing: Foxconn has a new plant in Brazil that will be spewing out iPads like nobody’s business by December.

According to CNN Money, “Hariharan is paid to cover Foxconn (the trademark of Taiwan-based Hon Hai), Apple’s major supplier, [and] was understandably concerned about what such a cut would do to Foxconn’s profit margins and the profits of its Asian partners.” For a guy who’s paid to cover Foxconn, it’s a bit of an interesting and unfortunate oversight.

[quote]”Apple purposely maintains enough suppliers and manufacturing partners to make any one supply-side data point inconclusive,” wrote Piper Jaffray’s Gene Munster, who mentioned the fact that Apple is transitioning to Brazilian manufacturing.[/quote]


[quote]”We believe the report out of JPM is extraordinarily misleading,” echoed Bullish Cross’ Andy Zaky, “given that it attempts draw a conclusion regarding Apple’s expectations which are simply not founded in evidence.”[/quote]

I’m quite sure this will blow over in short order but, if I were Hariharan, I wouldn’t ask for an invite to the Apple Christmas party this year.

Source: CNN Money
Via: The Loop

Corey has been been a tech journalist with a focus on Apple since 1998 and has written for The Loop, MacHome magazine, and as games contributor for The Mac Bible, and co-hosts the iGame Radio Podcast. He works as a corporate consultant and professional musician in Ottawa, Ontario.