AAPL Stock: This Chart Shows the No. 1 Problem for Apple Inc

Apple StockIs This a Problem for AAPL Stock?

Apple Inc. (NASDAQ:AAPL) took a massive hit last week when the company reported “iPhone” sales to be slowing. AAPL stock tanked on the news. Since then, it hasn’t been able to find a bottom.

The latest report now confirms that Apple’s biggest product is losing its U.S. market share to competitors. Currently, Apple’s U.S. smartphone market share stands at approximately 42.9%. This is down from more than 44% six months ago.

It is interesting to note that slowing smartphone sales are not an industry-wide trend.

All four of iPhone’s next big competitors have seen their market shares grow over the same period. Samsung, in particular, is emerging as a real threat to the iPhone. (Source: “comScore Reports November 2015 U.S. Smartphone Subscriber Market Share,” comScore, February 4, 2016.)

Recall that Apple’s iPhone was seeing its market share growing up until the summer of 2015. It appears that the latest lineup launched in September 2015—the “iPhone 6s” and “iPhone 6s Plus”—may have failed to impress the market.

Share (%) of Smartphone Subscribers
Sept 2015 Dec 2015 Point Change
Apple 43.6% 42.9% -0.7
Samsung 27.6% 28.4% 0.8
LG 9.4% 9.9% 0.5
Motorola 4.8% 5.3% 0.5
HTC 3.3% 3.3% 0.0

An International Data Corporation (IDC) report also sheds some light on the top smartphone operating systems. As expected, Apple’s iOS market share is losing ground to Alphabet Inc’s “Android.”

Share (%) of Smartphone Subscribers
Sept 2015 Dec 2015 Point Change
Android 52.3% 53.3% 1.0
Apple 43.6% 42.9% -0.7
Microsoft 2.9% 2.9% 0.0
BlackBerry 1.2% 0.9% -0.3

These numbers are important to gauge Apple’s health. The iPhone is Apple’s biggest revenue-driver. Slowing sales for this product are indeed alarming for holders of AAPL stock.

All eyes are now set on Apple’s March event, when the company is expected to reveal its next lineup of the smaller four-inch “iPhone 5se,” in addition to the “iPad 3” and “Apple Watch 2.”

Here’s to hoping that the new products will help provide some support to AAPL stock.