A customer inspects two Apple iPhone 7 smartphones at an Apple Store in Shanghai, China.
Qilai Shen | Bloomberg | Getty Images
UBS reiterated its buy rating on Apple shares due to its compelling valuation and long-term potential, even as the firm's Asia research indicated weak iPhone sales in China.
"IPhone 7 interest [is] tepid ... [UBS China] distributor checks find that iPhone 7 sales are weaker than the 6s was out of the box [after launch]," analyst Steven Milunovich wrote in a note to clients Thursday.
"Apple [is] losing share to domestic handsets ... Apple's brand remains strong, but the App Store can be difficult to access and slow."
The iPhone maker is scheduled to announce fiscal fourth-quarter financial results Tuesday.
