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Apple Downgraded for First Time Since October; Shares Drop

Apple Inc., the world’s most valuable technology company, fell the most since June on the Nasdaq after an analyst downgraded the stock, citing risks related to manufacturing partner Foxconn Technology Group.

Alex Gauna, an analyst at JMP Securities LLC, said slower sales growth at Foxconn’s Hon Hai Precision Industry Co., whose Chinese factories make Apple devices, may signal lower-than-expected revenue for Apple. Sales growth at both companies was tightly coupled last year, Gauna said in a research note today in which he lowered his rating on Apple shares to “market perform” from “market outperform.”