Craig Berger, an analyst with FBR Research, told clients in a research note earlier this week that Apple has reduced orders for both the iPhone and iPod for the second time in as many months, indicating less-than-stellar sales in the fourth quarter of 2007.

"For both iPods and iPhones, we believe Apple was previously targeting a roughly 50 per cent quarter-over-quarter decline for first quarter units, whereas we now think the firm is targeting a 60 per cent quarter-over-quarter unit decline," he wrote.

60 per cent decline expected?

Perhaps more important, Apple was also forced to cut MacBook orders by approximately 50 per cent due to poor forecasting on the company's part. That said, iMacs are still going strong and Berger believes the firm will actually increase orders by 35 per cent.

Obviously upset by the news, shareholders sold Apple shares off, which resulted in a downturn of 5.69 per cent following the announcement.