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.

“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.


“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.”

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… Full Bio