Apple Inc is expected to report iPhone sales increased slightly more than 1 percent in the holiday quarter when it announces earnings on Tuesday, its slowest growth ever.
The iPhone 6S and 6S Plus, which boasted record weekend sales when they launched in September, are now facing weak demand, according to analysts, because they have fewer distinguishing features than their popular predecessors.
Apple tapped into a crucial market when it unveiled its bigger-screen 6 and 6 Plus phones in 2014, grabbing the attention of Asian customers, who had previously lapped up phablets from players such as Samsung Electronics.
"Apple has become a victim of their own success as the blockbuster iPhone 6 product cycle was hard to replicate as many customers are either buying an older, cheaper iPhone 6 or waiting for the iPhone 7," FBR Capital Markets analyst Daniel Ives said.