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?