With a looming recession hitting us now, and things expecting to get worse, a charismatic yet questionable new President Elect, and the idea of a weakening global economy already here, it is no wonder people are beginning to stuff their mattresses with money and not run around buying as the past 2 decades allowed for and encouraged.

This state of affairs has reached even the lofty Olympian heights which is the tower that is Apple. Many analysts have lowered expectations regarding iPhone sales for the first quarter of ‘09’. Indicators point to production cuts in the number of iPhones to be manufactured (according to Cult of Mac’s: Ed Sutherland).

The cut is expected to drop as low as 5 Million units, according to Barclays Capital, which is down from 6.2 M. Expectations were also lowered by BMO Capital as well to 5.6 M units. Which was originally 6.6M. UBS on Wed of this week claims estimates of 6.7 M Units, down from 9M last quarter, and FBR Capital Market analyst, Craig Berger stated that Apple very well may have already cut production by 40%.

Ben Reitzes, Analyst for Barclays, Advised that Apple might cut price points on iPhones and develop a new, low-end handset to help stimulate sales, by observing the iPod and “mini” sales results.

Other items Such as low end laptops can also help to stem the Financial Tsunami that is hitting all of us now, for Apple, but Steve Jobs refuses to allow junk from Apple to hit the streets. As with anything involving the economy, we all will be watching to see what is next.