In essence, Microsoft’s weak quarter triggered pessimism in tech, causing Apple to drop like a rock. The stock is now well into correction territory, down 13.5% from its all-time high set almost exactly one month ago. Here’s why Apple’s sell-off on Friday was absurd.
The thing is that the whole reason the PC market is so lackluster is that consumers are shifting those spending dollars to mobile devices. We’re talking about smartphones like the iPhone and tablets like the iPad cutting into those PC unit figures.
These are the primary reasons consumers aren’t buying as many PCs as they used to, and it’s no coincidence Apple refers to these as “Post-PC” devices. That’s why it’s so nonsensical for investors to dump their Apple shares on Microsoft’s woes.