Apple Inc. (NASDAQ:AAPL) shares fell under $400 per share again on Monday before recovering slightly. As of this writing, they were still down 2 percent since opening bell. The fall comes on the heels of another negative report from Jefferies analyst Peter Misek.

Apple AAPL stock

Apple Cuts Plans For iPhone

Misek reports that their checks show broad-based iPhone build plan cuts. He said after last week’s checks showing that retail and carrier smartphone inventory levels are at 10 weeks compared to the typical 4 to 6 weeks, they decided to slash their estimates for the iPhone.

He said their checks who that the companies which are most affected by these glutted inventories are Apple Inc. (NASDAQ:AAPL) and its top competitor Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930). According to Misek, the iPhone and the Galaxy 3 are the two handsets which are the most affected.

Jefferies cut its iPhone estimates for the third calendar quarter of the year from 30 million units to 27 million and the fourth quarter from 50 million to 45 million. He said they remain cautious on Apple Inc. (NASDAQ:AAPL) as it prepares to add an iPhone 6 with approximately a 5-inch screen. As a result, he cut his price target on the stock to $405 per share from $420 per share.

Clues From Apple’s Supply Chain

Misek also reported a few clues from Apple Inc. (NASDAQ:AAPL)’s supply chain. Key Apple supplier Jabil Circuit, Inc. (NYSE:JBL) reported a week quarter for its Apple-exposed segments. The supplier also guided for its Apple segment to be flat year over year for the company’s August quarter. As of this writing, Jabil Circuit, Inc. (NYSE:JBL) had lost 3.51 percent.

He also said that Apple’s wafer starts at Samsung seem to have been cut and also that memory module manufacturers have been reallocating their third quarter orders away from Apple Inc. (NASDAQ:AAPL) and toward companies that are focusing on the emerging markets.

Apple’s Next iPhone?

Analysts and Apple Inc. (NASDAQ:AAPL) fans have both been waiting to see the next iPhone, and Misek says that by all appearances, mass assembly of the device has not yet begun. However, he believes it will begin soon and that trial production and taping are probably happening. He expects the iPhone 5S and a low-cost iPhone will launch in September and that “push-outs are more likely than pull-ins.” He’s also still looking for an iPad Mini with a Retina display to be released during the fourth quarter of the year.

Apple’s Estimates Trimmed

Overall, Jefferies also trimmed the company’s third calendar quarter earnings per share from $7.64 to $7.02 per share. The firm slashed Apple’s third calendar quarter revenue from $38.3 billion to $36.6 billion.