Apple's iPhone 3G: Losing Its Luster?

Are the tables turning on Apple(AAPL Quote) and its iPhone 3G?

Analysts say Research In Motion's(RIMM Quote) new BlackBerry Bold has been a hit this week at AT&T stores.

Sales of the BlackBerry Bold by AT&T(T Quote), which started Tuesday, is drawing BlackBerry fans to its retail outlets, according to a report from Citibank analysts.

The report says that store checks indicate strong initial demand with a number of stores saying they were sold out before noon.

That's very good news for RIM, the Bold and AT&T. The same handset had been having problems elsewhere. Orange UK stopped selling the Bold nearly a month ago citing 3G problems. Orange and RIM have not disclosed any information on the cause or when the problem will be resolved.

On the other hand, there are signs that production of Apple's blockbuster iPhone 3G could be slowing because of the economic slowdown.

USB says recent checks indicate various iPhone supply chain cuts. It believes recent data points suggest unit volumes are weaker than its current estimate. It has a neutral rating on Apple with a target price of $115.

Friedman Billings believes iPhone production could fall more than 40% in the fourth quarter compared to Apple's prior estimate of about 10%. It says a number of associated companies could see a negative revenue impact due to the reduced production.

But Sanford Bernstein thinks that despite slower earning growth Apple shares are significantly undervalued. It sees a target of $135 per share.