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This could spell trouble for Apple

We've heardabout the tough battle between Appleand Samsungover smartphones inChina. But, Apple now finds itself under siege with another one of itssignature devices – the iPad tablet.

Research company IDC says that Apple has seen itsshare of sales in tables fall from 50% of units shipped in first quarter of2013 to 28% of the 5.2 million tablets shipped in China for the second quarter.Apple's nearest rival, Samsung, had 11% and China's own Lenovo was at 8%.

So, who hadthe other 52%? Small, local startups using Google's Android operating system.

(Read more: Cheaper rivals eat into Apple's Chinatablet share)

The iPad'sdiminishing market share isn't just confined to China, according to other datacompiled by IDC. Worldwide, Apple's 14.6 million units shipped represent 32.4%of total units shipped in Q2. Last year this time, it had 60% of units shipped.Meanwhile, Samsung nearly quadrupled its sales from 2.1 million units in thesecond quarter of 2012 to 8.1 million units in Q2 of 2013.

So, willApple continue to play defense as it watches one of its most beloved products loseout to Samsung and other companies using Google's Android?

(Watch: Boosts ahead for Apple stock: Analyst)

JohnStephenson, portfolio manager at First Asset Investment Management, takes alook at Apple's fundamentals. He says there are valuation reasons why Appledeserves a look. On the charts is Talking Numbers contributor Richard Ross,Global Technical Strategist at Auerbach Grayson.

To hear Stephenson and Rossanalyze Apple, watch the video above.

[Disclosures: Stephenson andFirst Asset Investment Management both own shares of Apple.]

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