The Super Apple Collider

The following is a revision of a classic story that has been told to millions of students. A hunter at point A aims his gun and fires a bullet directly at an apple at point M in an apple tree. At the instant the bullet leaves the barrel of the gun at A, the apple drops from the tree on MX1.

The bullet and the apple collide in midair at C, regardless of the speed of the bullet or the size of the apple. Since this all happens so fast, the hunter thinks he hit the apple at the point M of aim. But instead, the collision (applesauce) occurs at C. Like most people, the hunter is amazed if the falling apple and bullet collide at all. Why does this happen?