The shares of Apple were negatively impacted by the report from Credit Suisse that the tech giant reduced its iPhone production orders. The Swiss bank said Apple may be in trouble in the short-term.The stock price of Apple declined more than 3% to $116.71 per share at the time of this writing around 1:35 in the afternoon in New York today.

Apple Inc. Reportedly Cut iPhone Production Orders; Shares Down

Apple experiencing weak demand for iPhone 6S

According to Credit Suisse, its technology team in Asia noted that Apple trimmed its component orders by as much as 10%. “The cuts seem to be driven by weak demand for the new iPhone 6s, as overall builds are now estimated to be below 80 million units for the December quarter and between 55-60 million units for the March quarter.”

The Swiss bank believed that the adjustment “reflect a more subdued launch around the iPhone 6S/6S Plus regarding uptake.”

Credit Suisse estimated that Apple will be able to sell 222 million iPhones in 2016. The Swiss bank previously estimated iPhone sales of 242 million units next year.

Credit Suisse recommends buying Apple stocks

Credit Suisse said any weakness in the shares of Apple was an attractive opportunity for investors to acquire a stake in the company. The Swiss bank said, “buy any dips.” The Swiss bank maintained its Outperform rating on the stock.

In a note to investors, Credit Suisse wrote,”While we acknowledge that shares may remain range-bound for the next few quarters (between $100 and $130), we continue to believe any weakness creates an attractive entry point. Specifically, we see scope for Apple’s rapid installed base growth of iPhone to drive future upgrades beyond the next few quarters and additionally see the installment plans structurally accelerating the upgrade rates of iPhone users.”

Now is the right time for smaller, lower-end iPhone

Furthermore, Credit Suisse suggested that Apple will now benefit from smaller, lower-end iPhone despite the failure of the iPhone 5C. The Swiss bank believed that a 4-inch iPhone without Force Touch, would be a “noticeably different form factor than Apple’s existing products,” and it could provide incremental revenue and EPS for the tech giant.

Credit Suisse estimated that Apple could generate additional $0.62 to CY17 EPS if it would launcg a a new lower-end iPhone next year. Apple could also increase its iPhone sales to 265 million units in the long-term, even allowing a 4% cannibalization.

On the other hand, during an interview with CNBC, BTIG analyst Walter Piecyk commented that investors should take Apple’s “supply chain checks in perspective with what’s going on with in the overall company.”

He noted that the stock price of Apple increased 6% this year while the market was flat.

Meanwhile, Dan Costa, editor of PC Mag.com commented that the report that Apple its cutting is production is “not typically good news.” He observed that the iPhone 6S is “not selling as well as last year’s model.

According to him, the situation is “not a disaster by any means” citing the fact that Apple did not offer a huge upgrade on the device and users are not rushing to get it.

A previous report indicated that there are fake iPhone 6S available for sale in China for only $37. There are also fake Apple Stores in the country.