This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Investors Are Leaving Apple For Microsoft. Should You?

Stocks in this article: AAPL MSFT GOOG BBRY VZ T S TMUS

It's broken below the demand line, and this type of break more often than not is followed with continued weakness. Stockpickr's Roberto Pedone examines the daily price chart in Want to Buy Apple? Think Again. There's a good explanation why investors are rotating out, too.

According to ComScore, Apple's iPhone popularity may have reached a zenith in the U.S. If there is one number to which all analysts pay particular attention it's iPhone sales and market share. iPhones drive revenue and profit with each sale, but also future sales from apps and other content by users.

Microsoft will soon begin showing measured improvements in market share if its aggressive push into mobile pays off. Obviously, an increase from 3.1% to 3.4% falls short of celebration and a0 .5% drop for Apple doesn't strike fear, but Microsoft's embrace of Google's (GOOG) model of giving away the operating system to sell apps and content is a proven winner. Google went from zero to hero, annihilating BlackBerry's (BBRY) seemingly total dominance in the process.

Investors should have little doubt it will work for Microsoft, and the only question is how large of a bite will Microsoft take from Google and will it result in more or less than Apple's decline. At a minimum, investors need to ask -- if Apple decides to draw a red line in the sand for market share, what will the margin impact look like?

AAPL Profit Margin (TTM) Chart

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,924.96 +120.16 0.67%
S&P 500 2,074.51 +3.86 0.19%
NASDAQ 4,774.3040 +8.9240 0.19%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs