AAPL Stock: Should This Keep Apple Inc. Up At Night?

AppleApple Inc. Is Losing Market Share

It looked like the end of the world for Apple Inc. (NASDAQ:AAPL) stock as its price broke below the $100.00 mark. But wait; there’s more. Market research firm comScore just came up with a new report on the smartphone market and Apple investors might get mixed feelings after reading it.

On Thursday, January 7, comScore published its latest report on U.S. smartphone subscriber market share. The good news is that during the three months ended November 2015, Apple remained the top smartphone manufacturer in the U.S. with a solid 43.1% market share.

Apple’s competitors, on the other hand, had a much smaller presence: Samsung ranked second with 28% market share, LG took third place with 9.6%, followed by Motorola with 5.3%, and HTC with 3.4%. (Source: “comScore Reports November 2015 U.S. Smartphone Subscriber Market Share,” comScore, January 7, 2016.)

The not-so-good part is that despite Apple’s dominant position, its market share as a manufacturer actually declined one percentage point, while Samsung, LG, and Motorola all had increased market shares by about half a percent each during this period.


Smartphone
Manufacturers
Total Smartphone Subscribers
Aug-15 Nov-15 Point Change
Apple 44.1% 43.1% -1.0
Samsung 27.4% 28.0% 0.6
LG 9.1% 9.6% 0.5
Motorola 4.7% 5.3% 0.6
HTC 3.4% 3.4% 0.0

Source: comScore MobiLens

When it comes to smartphone platforms, Apple’s “iOS” did not manage to give a run for Android’s money. Alphabet Inc’s (NASDAQ:GOOG) ubiquitous “Android” operating system continued to be the dominant smartphone platform in the U.S. Google managed to grow Android’s market share from an already-huge 51.7% to 53.1%.

Apple, while taking second place with 43.1% share, lost one percentage point, compared to the previous quarter. Microsoft Corporation (NASDAQ:MSFT) and BlackBerry Limited (NASDAQ:BBRY) continued to have limited market shares in the smartphone OS game, capturing only 2.9% and 1.2% market share, respectively.

Apple’s stock price fell quite sharply, as the U.S. stock market tumbled on Thursday, January 7. By Friday afternoon, at around 2:30 p.m., AAPL stock was up 1.38% to $97.79 per share. Due to the recent downfall in its stock price, Apple now has a price-to-earnings multiple of 10.64 and a dividend yield of 2.12%.