Apple Inc. (APPL) shares moved down to 1.1% to end at $398.07 as the company remained apprehensive for the looming demand for the iPhone 5, Market Watch reported. Also, Apple Inc.'s stock price target was cut to $460 from $480 at Oppenheimer Tuesday still caused by cold demand for the model, the report said.

Seemingly in line to the market fall, analyst Peter Misek said that the company might cut its orders of iPhone for the rest of 2013.

In a report made public through an investors note on Sunday, Mr Misek said that Apple had came up of a new manufacturing plan which included cutting iPhone orders for the third quarter. The orders will then be cut to 25 million to 30 million as compared to its previous manufacturing orders of 40 million to 45 million. Consequently, any orders for the fourth quarter will also be cut to 50 million to 55 million as compared to its previous orders of 60 million to 65 million.

Mr Misek explained that the order-cut was decided following a strict inventory monitoring at stores of three vendor in the UK.

According to Mr Misek, "we had recently noted that smartphone inventory levels at retail and carriers were elevated but were unsure which original equipment manufacturers (OEMs) were most exposed. Our survey of several hundred Orange, Vodafone and EE stores in UK indicates that inventories are elevated for iPhones and the Samsung Galaxy 3."

The analyst added that some suppliers for Apple reported a lower demand for iPhones.

It is to be recalled that manufacturing company Jabil, which makes the components for the iPhone 5, reported a weaker turned around for most of its operations involving Apple products.

Also, suppliers for memory modules started to drift away from Apple, leaning towards other more promising companies.

Mr Misek explained further that their strict monitoring revealed that "Apple's wafer starts at Samsung's Austin fab have likely been cut."

The whole of Mr. Misek's investigation were done in strict observance of company inventory and reports coming in from top Apple vendors and suppliers. Although his report was not able to detect any drop in inventory outside the UK, Mr. Misek said that the UK drop effect problems to Apple's whole global operations.

Forecast

On a positive light, Mr. Misek forecasted that Apple will likely release the much awaited iPhone 5S and the budget iPhone or the iPhone Lite by September of this year. This release will be immediately followed by the launch of Retina iPad Mini in the Fourth quarter. By next year, Apple welcomes the possibility of introducing an iPhone 6 designed with a 5ich screen.

He also expressed varied analysis as for the beta of iOS7: "We think the new user interface's cleaner look is big improvement. While iOS upgrades will be possible on the iPhone 4 and iPhone 4S, our experience was quite poor as the OS puts too much strain on the processor. We speculate that iOS7 could also be an attempt by Apple to spur upgrades."