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Sales of Apple Products Down 20% at Target

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During the second quarter of 2016, sales of Apple iPads, iPhones, and other devices fell 20 percent at popular retailer Target. Target CEO Brian Cornell highlighted the sales drop during an earnings call where he suggested the decline was due to a lack of "newness" and "innovation" and blamed poor Apple sales for Target's disappointing Q2 earnings results.

According to Cornell, electronics sales decreased by double digits, with Apple product sales responsible for a third of the overall drop.

targetiphonesalesdrop-800x687.jpg
"Our guests come to us looking for those products," Cornell said on a conference call to discuss earnings. "They're looking for the newness and the innovation. We're putting together plans with Apple and our merchandising teams to make sure we're ready to take advantage of that in the back half of the year."
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In the first calendar quarter of 2016, Apple reported its first year-over-year revenue decline since 2003 and its first ever drop in iPhone sales, sending its stock into a downward spiral. The negative trend continued into the second quarter with another year-over-year revenue drop, and based on Apple's forecast for the third quarter of 2016, a third consecutive decline in revenue is expected.

Apple expects to see revenue of $45.5 billion to $47.5 billion in the third calendar quarter of 2016, up to 12 percent lower than the $51.5 billion in revenue it saw in the third calendar quarter of 2015.

Device sales could turn around for Apple following the upcoming release of the iPhone 7 and iPhone 7 Plus, but as rumors suggest the changes being introduced in the two new devices are moderate, Apple's downward trend could potentially continue into 2017. Apple does, however, have some impressive products on the horizon, including the 2017 iPhone, which has caused stock to rise more than 20 percent over the course of the last three months.

The 2017 iPhone will mark the 10th anniversary of the original iPhone and to celebrate, Apple is rumored to be introducing some of its most significant iPhone changes ever like a dual curved edge-to-edge OLED display with a built-in Touch ID sensor, wireless charging, a glass body, and more.

Article Link: Sales of Apple Products Down 20% at Target
 
Article Link
https://www.macrumors.com/2016/08/17/sales-of-apple-products-down-20-at-target/
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Target CEO Brian Cornell highlighted the sales drop during an earnings call where he suggested the decline was due to a lack of "newness" and "innovation" and blamed poor Apple sales for Target's disappointing Q2 earnings results.
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Let me think.
Target, a store that is supposedly sell more things than just Apple stuff, is blaming Apple for poor performance.
If I was a shareholder, I would vote this guy out. Clearly he is not capable in maintaining a business, and relying on a single company's (Apple) products for sales performance.
 
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If Apple's sales aren't down 20%, then maybe the problem isn't Apple...

Maybe people just don't want to buy Apple things at Target when the sales staff isn't really knowledgeable about the products and many can order online or, if they really need product help when buying, can just go to an Apple Store?
 
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Honestly, the way MacRumors tried to spin this story and the way the CEO worded it are two completely different things. He's basically just describing what happens with Apple stuff every year at this time of year and saying they're looking forward to the regular holiday increase.
 
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MacRumors said:
Target CEO Brian Cornell highlighted the sales drop during an earnings call where he suggested the decline was due to a lack of "newness" and "innovation" and blamed poor Apple sales for Target's disappointing Q2 earnings results.
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Uh, what? One could argue that Apple sales are down, and I'm sure that could have affected Target a tiny bit. But is he really trying to say that iPhones and iPads are such a huge part of Target's business that Apple is why Target's Q2 earnings are disappointing? I find that hard to believe.
 
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I'm shocked it was only 20% when you consider Target's selection for "electronic" items are always on clearance.. they never make their full dollar per item capa. If Target put all their eggs in one basket that is "apple" then it's their own fault! Should have had other products to push, better marketing teams and some sort of gimmick to get butts in the doors to buy items... only thing I see here is someone making excuses as to why their bottom line isn't where it was projected to be.. stock fallout? It's not going to be running for the hills horrible for 20%.. but it's going to make investors think twice about Target and their market value going forward.
 
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pika2000 said:
Let me think.
Target, a store that is supposedly sell more things than just Apple stuff, is blaming Apple for poor performance.
If I was a shareholder, I would vote this guy out. Clearly he is not capable in maintaining a business, and relying on a single company's (Apple) products for sales performance.
Click to expand...

Read the summary again. It says Apple products sold at Target fell 20%. It doesn't say Target sales are down 20%
 
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MacRumors said:
Target CEO Brian Cornell highlighted the sales drop during an earnings call where he suggested the decline was due to a lack of "newness" and "innovation" and blamed poor Apple sales for Target's disappointing Q2 earnings results.

Article Link: Sales of Apple Products Down 20% at Target
Click to expand...

Lol. I see we've resulted to the blame game when it comes to explaining why your numbers are in the tank.

Mooooooom!!! I'm not making enough money because Apple's products are baaaad!!!
 
Retail sector is in so much trouble they will blame anyone for their shortcomings. It's a "somebody do something" situation out there. At least Sears is pivoting heavily toward integrated retailer and online sales. Hopefully they will have enough time to turnaround. Target has done nothing of interest in this category. Walmart is going at it guns blazing. Amazon is still eating everyone's lunch.

Sales will decline at brick and mortars. That's a fact of life. Adopt or die.
 
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pika2000 said:
Let me think.
Target, a store that is supposedly sell more things than just Apple stuff, is blaming Apple for poor performance.
If I was a shareholder, I would vote this guy out. Clearly he is not capable in maintaining a business, and relying on a single company's (Apple) products for sales performance.
Click to expand...

Electronics dropped 20% of which Apple was 33%.

The rest of the store numbers were not highlighted for this article.

I don't shop at TARGET (too expensive) store gives me a weird feeling.
Walmart FTW:)
 
macfacts said:
Read the summary again. It says Apple products sold at Target fell 20%. It doesn't say Target sales are down 20%
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Right, but it also said he was blaming poor Q2 sales overall on a lack of apple innovation, or at least that's what this article insinuates.
 
I don't normally shop at Target because of their security problem. But when I do I ask if they have Apple Pay....last week the clerk asked me what that was. Maybe Target's Apple business has something to do with not providing the extra security by providing Apple Pay?
 
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Still don't understand the appeal of OLED screens. Apple's screens continue to be reviewed as some of the very best - what is gained?

The target CEO sounds silly. But when you only update your iPad every other year!!! What do you expect Apple? It's not that hard to make updates every year to a product line - I know this because most other companies are updating 2-3 times per year.
 
Thunderhawks said:
Electronics dropped 20% of which Apple was 33%.

The rest of the store numbers were not highlighted for this article.

I don't shop at TARGET (too expensive) store gives me a weird feeling.
Walmart FTW:)
Click to expand...
I don't think I'll ever hear this again.

Target gives person weird feeling. Praises Walmart for presumably not weird feeling.

Whatever floats your boat, man.
 
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