NEW YORK (TheStreet) -- Apple (AAPL) - Get Report shares are declining by 0.57% to $122.68 on Wednesday as the worldwide tablet market has seen a 7% drop in the second quarter, compared to the same period the previous year, MarketWatch reports.

This is the third quarter in a row that tablet shipments have declined and the tech giant, which dominates the industry with its iPad, has been negatively impacted, MarketWatch noted.

In the latest quarter, tablet shipments came in at 44.7 million units. This is a 3.9% drop from the first quarter of 2015, according to industry tracker IDC.

"We're seeing a profound shift in the vendor landscape as the top two vendors, Apple and Samsung Electronics (SSNLF) , lose share in the overall market," IDC tablet research director Philippe Bouchard told MarketWatch.

Cupertino, CA-based Apple designs, manufactures, and markets mobile communication and media devices, personal computers, watches, and portable digital music players worldwide.

Separately, TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate APPLE INC (AAPL) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Powered by its strong earnings growth of 44.53% and other important driving factors, this stock has surged by 28.77% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AAPL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • APPLE INC has improved earnings per share by 44.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, APPLE INC increased its bottom line by earning $6.43 versus $5.66 in the prior year. This year, the market expects an improvement in earnings ($9.12 versus $6.43).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Computers & Peripherals industry average. The net income increased by 37.8% when compared to the same quarter one year prior, rising from $7,748.00 million to $10,677.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 35.9%. Since the same quarter one year prior, revenues rose by 32.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Computers & Peripherals industry and the overall market, APPLE INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • You can view the full analysis from the report here: AAPL Ratings Report