UPDATE: Apple To Unveil New iPhone Software Tuesday

(Updates with additional details)

Apple Inc. (AAPL) will provide a "sneak peek" of its latest iPhone software next week, amid new projections about weakening sales of iPhones and other smartphones.

At a media event Tuesday, Apple intends to introduce the third version of its iPhone operating system software, and new tools for creating software programs distributed through Apple's App Store, the company said in an invitation distributed Thursday.

A spokeswoman for the Cupertino, Calif. company had no additional comment.

Apple's new software emerges as the global economic crisis has hit the market for iPhones and other smartphones. The market researcher IDC Corp. on Thursday lowered its 2009 worldwide smart phone sales growth forecast to 3.4% from 8.7%.

Competition among smartphone software vendors is also heating up. This week, Apple rival Microsoft Corporation (MSFT) unveiled new elements of its latest smartphone operating system. Meanwhile, German software maker SAP AG (SAP) and Sybase Inc. (SY) disclosed a partnership to deliver mobile enterprise programs to workers on the go.

Apple shares were up 3.3% at $95.74 in recent trading. The stock has gained 12% this year, but is down nearly 50% since August.

-By John Kell, Dow Jones Newswires; 201-938-5285; [e-mail]

(Ben Charny contributed to this report.)