Apple (AAPL) was hit with more concerns on Monday regarding slowing sales of its popular iPhone as Jefferies (JEF) axed its price target on the tech giant and cut its outlook on third-quarter sales.

Jefferies analyst Peter Misek lowered his price target on Apple to $405 from $420, citing anticipated iPhone build cuts on the back-end of worsening inventory levels for iPhones, and narrowed his third-quarter iPhone sales estimate to 27 million from 30 million.

He also cut current-quarter revenue and earnings per share to $36.6 billion and $7.02 a share from an earlier $38.8 billion and $7.64 a share and lowered anticipations for the fourth quarter.

“We remain cautious on Apple,” Misek said.  

On the supply side, Jabil reported recently a weak quarter for its Apple-exposed segments and guided the main Apple segment flat year-over-year for the August quarter.

Shares of Apple followed a steep decline in the broader markets on Monday, slumping 3.6% in recent trade to $398.55. With Monday’s decline, they have fallen more than 25% since the beginning of January.

Meanwhile, Jefferies said it sees production of the next-generation iPhone, likely the iPhone 5S, and a lower-cost iPhone beginning imminently and launching in September.

Follow Jennifer Booton on Twitter at @Jbooton