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

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

Apple didn't immediately return calls seeking comment.

The news comes a day after Verizon ( VZ) reported that there was an initial surge in customer defections to rival AT&T's ( T) during the iPhone introduction, but the following weeks saw a return to normal. Verizon says it is now signing up two customers to every one it loses.

Want more? Check out TheStreet.com TV video. Scott Moritz tackles the iPhone rumors driving down Apple's stock.

The hotly anticipated iPhone generated a great deal of attention and initial sales were brisk. But as TheStreet.com reported, the demand was less than some had anticipated. People familiar with the company said at the time that Apple were prepared to sell out the 1 million phones it had ready for its weekend debut.

Last week, AT&T reported that it had activated 146,000 iPhones in the second quarter consisting of less than two days of iPhone sales. Analysts had expected anywhere between 200,000 to 700,000 units would be sold in that period. Activation glitches seemed to have contributed to the lower than expected results.

Apple said iPhone sales were off to a great start and the company booked 270,000 iPhones sold in its fiscal third quarter which ended June 30.

Apple also predicted it would sell 1 million iPhones by the end of September. Observers say the $600 phone may enjoy a big sales pick up around the holidays during the crucial gift giving season.

Apple shares fell $3.58 to $137.85, while telco partner AT&T saw its stock drop 18 cents to $39.59.

Apple's chip vendors could also see some jitters if the rumors are true. Analysts have identified some of the key component suppliers as Broadcom ( BRCM), Texas Instruments ( TXN), Marvel ( MRVL), Micron ( MU) and Skyworks ( SWKS), among others.

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