Apple has lowered its projected iPhone shipments for the current quarter, reducing component purchases from its Far East manufacturers, according to a report.

DigiTimes cites the Chinese-language Economic Daily News, which allegedly reports information drawn from sources at Apple's component suppliers in Taiwan. It claims Apple has lowered its projections from two million units to "around 1-1.2 million units" for the quarter, which ends March 2008.

Apparent slowness in European sales seem to be the culprit of Apple's reduced anticipation. The report also confirms Apple to have sold "close to" four million iPhones so far.

European customers have resented the need to enter into exclusive long-term contracts with Apple's chosen European network partners in order to get an iPhone. Initial product price and the iPhone's lack of 3G support have also been cited as reasons to defer purchase of the handset.

Apple is expected to release a 3G version of the device at some point this year, a move which may initiate another rush of sales of the sophisticated mobile phone.