Apple Inc. (AAPL), Amazon.com, Inc. (AMZN): Here’s How iTunes Is Losing Its Mojo

Apple Inc. (NASDAQ:AAPL) has been the frontrunner on digital audio streaming since iTunes hit the computerized consciousness a few years ago. And with the digital community becoming more mobile, iTunes has continued to dominate thanks to the promulgation of iPads, iPhones and Apple iPod Touch devices.

However, as mobile competition has increased and several tech companies have brought out their own mobile devices, some of them have included their own versions of music-streaming and storage services. Think Google Play, Amazon MP3 and the like. Amazon.com, Inc. (NASDAQ:AMZN) has been noteworthy in its move into the space, providing  DRM-free music content at a very low price, which allows buyers of Amazon music to play the content on any device – even Apple’s iOS and Google’s Android devices.

Well, that competition seems to be eroding some of the market dominance that Apple Inc. (NASDAQ:AAPL) has held, according to results of a recent tech sector industry study released this week.  Apple still came out well in front, with 63 percent of the streaming audio market. However, what is noteworthy in this study is that Apple has lost market share for each of the last couple years, and Amazon.com, Inc. (NASDAQ:AMZN) has seen some significant growth.

In this most recent study, Amazon has grabbed 22 percent of the market, which is a 50-percent growth rate over a year ago, while Apple’s market share has dropped from 68 percent in 2011 – a slide of 7 percent.

It is indicated that the rapid growth in Amazon.com, Inc. (NASDAQ:AMZN) in this sector could be directed back to the introduction of the Kindle in 2011 and, of course, its rapid growth in the tablet/mobile device market.

So while Apple Inc. (NASDAQ:AAPL) may not in any danger of losing market share in this space anytime soon, knowing that Amazon is essentially taking the market share that Apple had could certainly lend some credence to the talk that Cupertino is working on an iRadio service as a complement for iTunes to perhaps solidify its market dominance before Amazon.com makes a serious run.

What are your thoughts about this? Does Apple Inc. (NASDAQ:AAPL) have anything to worry about, or is Amazon.com, Inc. (NASDAQ:AMZN) positioning itself in this market? Let us know your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.