Wedge Says Apple Has Reduced iPhone Production Forecasts, Sees iPad Estimates 'Intact'

Wedge Partners' Brian Blair issued a research note Monday morning warning of some possible production cuts coming for Apple's AAPL iPhone. Citing "slowing demand for high-end handsets globally," Blair said he believes Apple recently reduced the iPhone production forecast for the second half of this year by 20 percent. He now sees Apple's iPhone unit forecast in the 90-100 million unit range, down from a prior forecast of 115-120 million. "Our expectation for the low cost iPhone continues to be that Apple will repurpose the iPhone 4 with a plastic backing that will allow the handset to sell at a retail price below $250. As we head into earnings season in the coming weeks, we expect these lowered unit forecasts (along with the same from Samsung on the S4) to create an overhang for key smartphone suppliers like Qualcomm QCOM and Broadcom BRCM," according to Blair. The analyst called overall iPad unit forecasts "intact." After opening above $420, Apple shares plunged over the first hour of trade. The stock is now down more than $3 to under $414.