Apple Stock Dips As Global Market Share Shrinks Due To Intensifying Competition From Chinese Rivals: Retail Sentiment Bullish

Shares of Apple Inc. (AAPL) fell in morning trade on Monday as the Cupertino-based tech giant witnessed a decline in its global market share due to intensifying competition from Chinese rivals.

Apple’s share price was down more than 2% at the time of writing, extending declines over the past month to more than 7%.

According to a report by research firm Counterpoint, Apple’s global market share in the smartphone industry fell from 19% to 18% in 2024.

Apple’s iPhone sales fell 2% year-on-year globally, even as the wider smartphone industry saw a 4% growth in shipments. Chinese smartphone makers saw a staggering 12% growth, in sharp contrast to Apple’s decline.

"Apple's iPhone 16 series was met with a mixed response, partly due to a lack of availability of Apple Intelligence at launch," said Counterpoint research director Tarun Pathak.

Another factor playing on Apple investors’ minds on Monday morning is a class action lawsuit alleging that the iPhone maker “overcharged” in App Store fees. 

The lawsuit states that Apple indulged in anticompetitive behavior by forcing users to download apps only through the App Store while charging developers a 30% cut.

The lawsuit seeks $1.9 billion in damages. Apple has called the lawsuit “meritless.”

Retail sentiment on Stocktwits entered the ‘bullish’ (55/100) territory from ‘bearish’ (38/100) a day ago. Message volume also increased but remained in the ‘low’ (43/100) zone.

AAPL sentiment and message volume January 13, 2025, as of 9:30 am ET | Source: Stocktwits

One user has a $350 price target for the Apple stock.

Another user thinks a bounceback will happen “soon.”

Apple’s stock price has fallen over 1.6% in the past six months, but its one-year performance is relatively better, with gains of 25.50%.

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