It's hard to imagine talking about the iPhone (News - Alert) without using the word “up” or “increase,” but that seems to be just what's happening on several critical market fronts. The hotly popular device actually looks to be losing market share in some places, as Android (News - Alert) devices gain ground in both European markets and the burgeoning Indian market.

According to reports from IDC, not only did iOS lose ground in Western Europe—with numbers dropping from 25 percent in the first quarter of 2012 to 20 percent a year later—the numbers were significantly better for Android devices in the same field, reaching a 14-percent increase in year-to-year comparisons. Android devices reportedly accounted for 21.9 million units, with market share increasing from 55 percent in the first quarter of 2012 to 69 percent a year later. Of course, the recent declines in the larger European economy have quite a bit to do with that, as disposable income for consumers falls off with job losses or those concerned about same, who in turn do less spending in a bid to save more cash for emergencies.

While that would be bad enough news by itself, things only got worse when the Indian market numbers were considered. Apple (News - Alert) reportedly found itself removed from the top five rankings in India based on total unit shipments, with Android taking the Indian market for a full 90 percent market share. Granted, this was driven mainly by low-end device sales, but most of those devices run the Android OS, so it's clear what's powering smartphone use in India.

This in turn is posing something of a problem for Apple. While the iPhone is clearly doing well in the United States, its performance in other markets is starting to fall short. Of course, Apple isn't really in any danger of failing, but its status as one of the biggest names in mobile devices depends on regular and repeat business.

In the past, some have suggested that Apple desperately needs some significant innovation, lest it find itself even further behind. Apple is clearly out to make some turnaround on the innovation front with new announcements, but if the hardware can't follow suit in future releases, Apple may end up losing that status as an innovator for good. Worse, as Android is proving a more cost-effective alternative in a still-fragile economy, Apple's losses may not slow but rather continue unless either Apple can offer a value too good for customers to refuse or start dropping prices.

Only time will tell just how well Apple keeps up with the need to innovate and stay strong in the market, but it's becoming increasingly clear that Apple's going to need something fairly big to retake the ground lost to Android in recent months.