Apple

Why Apple stock crashed on Friday morning – but it shouldn’t have

What happened

Shares of An apple (AAPL -1.79%) collapsed on Friday morning, falling as much as 2.2%. As of 11:57 a.m. ET, shares were still down 1.8%.

The broader market indexes were caught in a downward trend, which no doubt contributed to the iPhone maker’s decline. However, even as the tech giant fell, there were a few reports that stuck positive news for the company — and the shareholders.

So what?

Earlier this month, Apple announced the latest version of its popular headphones, the second generation of AirPods Pro. The earliest reviews of the fan-favorite device are in — and users are raving.

CNET called them “the best small headphones you can buy,” citing the improved sound, active noise cancellation, and better battery life, saying they “deliver remarkably good performance for their size.” Meanwhile, TechCrunch said you “won’t want to take them out of your ears,” also applauding the better sound, active noise cancellation, transparency mode, and a case that supports wireless charging. Those accolades came when the AirPods hit stores today.

It’s worth noting that Apple’s commitment to technological innovation has helped it capture a majority share of the US headphone market.

In perhaps even bigger news, the company signed a multi-year deal with the National Football League, making Apple Music the new sponsor of the NFL Super Bowl halftime show. At the heart of the annual Football Championship each February, the halftime show is an extravagant event known for hosting some of the biggest acts in the industry, making it a perfect showcase for Apple’s subscription music service.

Now what

It is important to place these developments in the context of Apple’s wider business. The iPhone is responsible for more than 54% of Apple’s $282 billion in sales revenue so far this year, so the importance of the company’s flagship device cannot be overstated.

However, Apple has been working aggressively to expand services, Apple Music subscription being one such example. These moves are designed to reduce its reliance solely on the iPhone. The company’s relentless progress thus far makes Apple stock a buy.

Danny Vena holds positions in Apple. The Motley Fool has positions and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 Apple calls and short March 2023 $130 Apple calls. The Motley Fool has a disclosure policy.