A report from Canaccord Geniuty has lowered Apple Inc. (NASDAQ:AAPL) estimates owing to slower high end smartphone sales growth trends.

Apple

Global handset surveys for the month of June suggest that the iPhone 5 is the top selling smartphone across all global carriers. As per the report, the new iOS 7 introduced at WWDC has impressive features and expects new iPhone product launches in the second half of 2103. Also, the survey reveals that after the launch of Samsung Galaxy S4, sell-through market shares of the iPhone has fallen.

Softening in demand for high-tier smartphones

The report expects softening in demand for high-tier smartphones as Samsung’s high-tier smartphone sales was below estimates, and the Korean firm has already reduced the price of the Galaxy S4. “In fact, we believe demand for the lower priced iPhone 4 remains strong, leading to our below-consensus iPhone ASP assumptions due an increasing mix of lower-ASP iPhones.”

Based on uncertain timing for the launch of an iPhone 5S and mid-tier iPhone, and softening in demand for high-tier smartphones, analyst at Canaccord are lowering their iPhone estimates for the second half of 2013.

Apple’s iPhone Estimates Slashed

For the September quarter, the report lowers its iPhone estimates from 30 million to 28 million, and expects the iPhone 5S to ship in late September. For 2014 also, the report lowers the iPhone estimate from 181 million to 173 million, based on the lowered growth estimates for the high tier smartphone. EPS estimates for 2103 have also been slashed from $40.12 to $39.29, and for 2014, from $46.80 to $44.04.

Long Term View for Apple

In the long term, the report believes that Apple Inc. (NASDAQ:AAPL) has a strong product pipeline, including a refreshed iPhone 5S, mid-tier iPhone and iPad, which will help the company to re-accelerate growth in 2014. Analysts at Canaccord reiterate their buy rating on Apple Inc. (NASDAQ:AAPL)’s stock but lower the price target to $530 from $560.

Is Apple (AAPL) reducing iPhone production?

Yesterday, Apple Inc. (NASDAQ:AAPL) shares were down in early trading after a report claimed that the company is planning to lower the iPhone production by 20 percent in the second half of the year. A report from analyst Brian Blair of Wedge Partners claimed that Apple Inc. (NASDAQ:AAPL) will produce between 90 million and 100 million devices compared to earlier projected range between 115 million to 120 million. The cuts as per the report, will be for iPhone 4S, iPhone 5 and for the next generation of the iPhone.