1 Bit of Bad News for Apple Stock Investors

OK, so Apple's (NASDAQ: AAPL  ) stock isn't doing so great. We all know that. But the stock price isn't the only thing that's falling for the company. The latest IDC numbers show iOS is losing ground in India and Western Europe as well. But is this just a temporary setback, or a sign of more to come?

Small drop for iOS, big jump for Android
In Q1 2013, Apple's iOS lost 5 percentage points in market share in Western Europe while Google's Android OS gained 14 percentage points year over year. This puts Android at an amazing 69% market share in the region, and leaves Apple with just 20% now.

Not good.

What makes matters worse is that Apple was one of only two top-five smartphone makers in Western Europe to see its year-over-year shipment numbers drop (the other was Nokia). Apple shipped just 6.2 million units while major rival Samsung shipped 14.3 million -- and this excluded the latter company's feature phones.

While smartphone shipments declined by more than 4% year over year in Western Europe, Samsung managed to increase its year-over-year smartphone shipments by 31%.

All of this would be bad enough, but the IDC data also showed Apple got kicked out of the top-five vendor spot in India in Q1 2013 as well. This is pretty important considering that India just became the world's third-largest smartphone market this week. Meanwhile, Android is killing it India with 90% OS market share in the country.

More difficulties to come
For Apple, Western Europe isn't a great bet for the near future. The majority of smartphones sales to date have been for premium devices -- like the iPhone. But going forward, the next round of purchases are expected to be of cheaper smartphones. 

This is obviously bad news for Apple. Until the economic climate in Western Europe turns around, investors can expect Apple to have a hard time shipping iPhones over there. Sure, a cheaper iPhone could help turn that around, but the device is still just a rumor -- and Apple needs it in these markets now.

This Fool is having a hard time understanding Apple's seemingly slow response to shifting market desires. At some point, Apple and its followers need to acknowledge that the company is clearly doing something wrong -- even if it is making great products. With each step of Android growth, the iMaker shows that its popularity with consumers is waning.

Though Apple isn't faring well in Western Europe and India, the company does have a history of cranking out revolutionary products... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.


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Comments from our Foolish Readers

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  • Report this Comment On June 26, 2013, at 8:03 PM, dwilh51183 wrote:

    It's time to fire Tim Cook. He's to laid back, stupid,blind , and he's not a competitor. Where is the 58 billion stock buyback he promised. Why does AAPL have that stupid policy of not using outside submissions for products? Obviously , AAPL is arrogant and thinks they can innovate. I've thought of 3 great products aapl could use to make a killing but they won't let me talk to cook. And what is taking Cook so long to get cheaper iPhones made. He must be a total dufas to let AAPL shareholders get plastered and not do anything about it. 5 straight quarters of worse earnings. It's time to fire this clown and hire me

  • Report this Comment On June 26, 2013, at 8:31 PM, theflew wrote:

    It's interesting that you talk about Nokia negatively. But, fail to mention outside of Android, WP had the the only other market share that grew and by 78% - a rate higher than Android.

  • Report this Comment On June 27, 2013, at 3:11 PM, phildevil wrote:

    Don't know what the price of iPhone is in China, but on eBay India, etc. it is ~$600+, while $100 gets you great Android phones.

    Yes the upper 0.1% of India is still 1m+ but this would compare to 30%*1.3b ~400m smartphone sales that Tim Cook is ignoring.

    Nothing surprising here .. move along

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