Apple Sinks on iPhone Cutback Talk

Updated from 12:33 p.m. EDT with new stock price

Another round of rumors is taking the shine off Apple's (AAPL Quote) iPhone.

Apple shares took a 3.5% dip Tuesday to $136.47 amid speculation about a cut in production of the trendy iPod-inspired phone. The chatter that sent the stock down was that Apple was reducing its production of iPhones from "9 million units to 4.5 million units," according to a note from the stock trading desk at Miller Tabak & Co.

The trading note, issued in an attempt to explain why Apple shares were down in heavy volume despite a lack of apparent news, cites talk on Wall Street and also points to speculation that the cuts may be coming in iPod production. ...