UBS Securities said Tuesday it has recommended a sell rating on Hon Hai Precision Industry, the world's largest contract electronics maker, amid concerns over its sales growth. The sell recommendation came after Hon Hai Precision Chairman Terry Gou said over the weekend that he expects sales of the group in the long term to slow down and cut the annual sales growth forecast to 15 percent from the 30 percent of the past decade. However, Gou said Hon Hai Precision can still meet the 30 percent sales growth forecast for 2010 on rising demand as the global economy recovers. The sales forecast downgrade has hit Hon Hai shares in the past two trading sessions on the Taiwan Stock Exchange, with the share price down 3.59 percent, while the benchmark weighted index rose 0.69 percent. According to market observers, the launch of Apple products, including iPhones, iPads and iPods, has grabbed a large market share from other electronic gadgets such as notebook computers and traditional cell phones. While the local media has speculated that Hon Hai will serve as the sole assembler for Apple's iPhone 5G, UBS Securities said that 'this is just the start of Apple product cannibalization.' 'Even though Apple is big for Hon Hai and accounts for around 20 percent of its sales, the other 80 percent of its business is still impacted negatively by the rise of Apple products, ' the brokerage said. UBS Securities said it has witnessed many electronics component makers suffering from falling orders in the wake of the launch of new Apple products. The brokerage has set a target price of NT$102 for Hon Hai shares. However, Fubon Securities Investment Services said that while Hon Hai sales will slow, its unmatched large production scale is expected to help offset the impact from falling revenue, and maintained an add recommendation on the stock with a target price of NT$143. Yuanta Securities Investment Consulting said it has rated a hold on Hon Hai shares after taking into consideration rising operating costs following two wage hikes announced in June for the company's Chinese workers. Yuanta expressed caution about Hon Hai Precision's third quarter results due to the wage hikes. Once Hon Hai shares fall to NT$105, it would be a good time for long-term investors to buy, according to Yuanta. Hon Hai closed down 0.92 percent at NT$107.50 on the Taiwan Stock Exchange Tuesday. 