If I had bought Apple stock back in 1985…
AlleyInsider is reporting that AAPL is down to $110 – 14% – due to stock downgrades by Morgan Stanely and RBC. Why? Because folks aren’t buying stuff – it’s “the weakest [90-day electronics spending] ever seen” – and Kathryn Huberty points out that Apple isn’t in the sub-$1,000 laptop market where all the money is. Fair enough: people are scared, they don’t buy iPods. But the sub-$1,000 laptop market is not a place for Apple to play – the profit comes from shipping huge numbers, not from all the cost savings to be had by pricing your laptops at lower than low.
As we all know, Apple my be getting into the sub-$1K next month – October 16 seems to be the secret launch date – so this minor correction is nothing to worry about. Unless, of course, you’re a Wall Street Analyst.