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Lol nice putting revenue number instead of profit. A profit of rough 7 billion compared to 50 billion is not "very profitable". Not to mention quite a few sales of macs is influenced by the integration of the iPhone and macs.

Okay, so your logic gymnastics are getting laughable now. First of all, who said you get to "compare" $50B to $7B? If we're comparing let's just say that $50B is not very good compared to $500B, for that matter.

What I said was that even if the iPhone (and iPad) were to go away tomorrow Apple would be a very profitable company. $7 billion in profit would still put Apple in the top 20 of Fortune 500 companies in net profit.

And unless you're a market analyst with impeccable and verifiable credentials you don't get to make the call that "quite a few sales of macs is (sic) influenced by the integration of the iPhone and macs." We're dealing with real world numbers here. Not your prediction of what ifs.

I will grant you that Mac sales growth in the past was boosted by the iPod, and then later the iPhone, and the halo effect. But in this day and age the Mac stands on its own, and is on the radar of millions of users.
 
I work for an outside company and I am in a smaller Target store five days a week.

They recently eliminated the display iPhones and got rid of the dedicated brown shirt cell phone associates. Everything is behind glass and most of it is old technology.

There is hardly ever a person working only in electronics. People are usually all over the store working, restocking things, straightening things up (Target customers are just as much of animals as Walmart ones are), etc. You have to press a button which sends out an automated call to everyone in the store with a walkie, and somebody has to respond.

The layout, product selection and look of their electronics section is completely outdated. Most of it is junk technology. They don't sell any real computers. They have a large section dedicated to paperback books and magazines. They sell a lot of cheap movies and music. The one thing going for them is that they get Target "exclusive" versions of some movies or music with extra content/tracks and/or special packaging.

To a lesser extent than Walmart, Target tries to be everything to everyone. Even in a small store they carry product lines that take up space, don't turn over and eventually get put on clearance which means lower margins. They also are too far ahead of retail seasons. People are still looking for summer merchandise in early August when everything has been back to school for weeks.

Target has a good logistics system, and everyone pretty much has an iPhone where they can scan shelf tags and look up inventory, but their out of stock situation leaves a lot to be desired.

They have also really focused on grocery in the past year. Grocery is a very low margin part of the store that is used to drive sales in other parts of the store. This is why Walmart developed the supercenter. Get people in the door with cheaper groceries than the competition, and then get them to buy made in China crap with crazy margins. Walmart also has the ability to dictate to suppliers exactly what they want and how much they will pay for it. Walmart doesn't lose money on sales unless they make a conscious decision to, like with price matching. They used to automatically price match local competitors and display signs at the shelf, but they no longer do that.

One thing Target does do well is it drives a lot of loyalty with their Target Red card debit and credit cards. 5% off every day when you use their card. No fees paid out to Visa or MC. All cards now have chip technology. Like Walmart, they feel they don't need to offer NFC because they have their own proprietary payment system that works for them and allows them to collect data on every customer. They also have an app called Cartwheel, which offers 5% to 50% off certain items for certain periods of time. That discount stacks on top of the Red card discount and any coupons you may have.

About six months ago, Target invested a TON of money completely resetting their grocery sections. New items, new packaging for their Archer Farms and Market Pantry private label items, new endcap and in-aisle displays, more natural/organic, etc. They even bring in more niche items like almond milk and chia drinks to their small stores.

If they want to boost their Apple sales, they are going to have to eliminate all the old technology they carry, offer better and more frequent discounts, and have a sales staff that is knowledgeable and passionate about the items they sell. Otherwise people are going to go to an Apple store, which is a reality for a lot more people now since Apple is constantly opening up new stores, or go to Best Buy where they have reinvented themselves by offering a store-within-a-store experience on top brands and categories.

The grocery industry is experiencing some tough times at the moment due to deflation in certain categories, which leads to lower prices, lower total sales, and lower profits. There has also been a lot of consolidation in the grocery market. Albertson's merging with Safeway, Ahold merging with Delhaize, suppliers merging, and so on. Since Target is running such a low margin on grocery, and not being the best at it since it is only a piece of their pie, they are going to feel the pain when the industry as a whole contracts.

Lastly, I really don't think the bathroom controversy has lead to a lot of loss in sales. I think it gave them a ton of bad publicity and showed how close-minded a lot of America still is. Trump supporters shop at Walmart, not Target. Walmart has been offering family restrooms for a long time now, something that Target failed to do.
 
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.

I'm sure this has been pointed out to you on this thread, but you should read the original finance article or the transcript of the call rather than this Macrumors article (which is skewed in my opinion).

He's not blaming Apple for Target's lower sales in electronics. Rather, he's pointing out a fact and a trend. A fact and a trend that was voiced by Tim Cook himself during AAPL's conference call a few weeks earlier. Sales will slow down until fall when the new iPhone is released, which will cause a seasonal bump in quarterly numbers. Target was just pointing out this fact in its electronic department where Apple is a major seller.

Out of curiosity, what do you think of Tim Cook's management? This fiscal year Apple is expected to report a decline in sales and rev's, which is seen as quite disappointing by many. And all is rosy to Tim Cook as per the last earnings call. Would you consider replacing him?
 
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most of the comments here are rather dim. let me set your hater skewed nonsense straight:

1) Target doesn't sell macs, only iOS devices and those are updated annually.

2) Target customers don't know or care about Intel chipsets, even if target did sell macs.

3) techies don't shop at target.

4) people don't need new iDevices every year.

1) iOS devices are overpriced outdated tech
2) people don't even care about computers that are over a year old.
3) techies don't buy macs but have much faster hackingtosh with state of the art tech at a decent price
4) people expect the latest and the greatest if premium priced. Apple is lagging on all fronts and their drop is understandable.
 
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Not to anyone who understand the basics of capitalism. Can´t grow or maintain forever.
True!

Yet had Apple remained focused, stayed hungry and motivated, they could have easily created a better iPhone and handily led in the smartphone sector.

Instead they were so wrapped up in celebrating the huge profits they make, their primary focus was profit taking off the backs of gullible customers.

Selling the logo has carried Apple for years. But now it's beginning to fade, behind their competitors, Apple is forced to catch up.
 
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I've never gone to Target for "newness and the innovation." That would just impede my beeline to the frozen corn dogs and greeting cards.
 
So tired of people saying all everyone does is whine and complain about apple. Maybe if apple was doing everything right this kind of comment would be justified. However apple has let its products go out of date and stagnate. People have the right to complain when a company like apple is acting like they don't care if their products have a new release.
 
Target is one of the worst companies. All you need to know about Target, is to follow their entrance and exit in Canada. Here is a really good story. A complete crap, mismanaged company. They also purposefully screwed tons of Canadian businesses upon their exit, ordering tons of crap while they knew the ship was sinking, and then claiming bankruptcy. They are being sued by many companies. I'm not apologizing for Apple, I think their star is losing their shine after Jobs departure, but Target is an awful company who have nothing to blame for their failures but themselves.
 
Targets declining Apple sales is indicative of how average the iPhone has become. Strong sales to Devotees, but soft overall with Samsung luring customers with it's more innovative highly useful Galaxy lineup.

Apple is no longer an exciting product.
If I were Samsung I wouldn't break out the champagne yet or consider Apple dead or unable to produce "wow" products. Yes, I certainly hope Apple switches to better screens (OLED) and edge to edge designs but I would hardly call those innovations, just technical features. There is really not much that dazzles from either Samsung or Apple in smartphone design and features and none of incremental changes from either really warrants excitement. However, if something transformative happens I would put my money on Apple over Samsung.
To the person who suggested iOS would be better served on a Samsung device, seriously?
 
Targets declining Apple sales is indicative of how average the iPhone has become. Strong sales to Devotees, but soft overall with Samsung luring customers with it's more innovative highly useful Galaxy lineup.

Apple is no longer an exciting product.
Targets declining Apple sales is indicative of how bad target has become. I even stopped shopping there. Samsungs nice but not useful to me, but I'm waiting for the iPhone 7, after all I'm a devotee.
 
That's Tim's job to find someone who will do this.

As I've said before, I'll bet there are at least a half-dozen people already working at Apple who can do this. He just needs to find who they are and empower them. All the power is with the old guard, who are conservatively cruising into retirement. They never had to be innovative, because their leader was. This means that they are mostly followers, who merely sprinkle in their own ideas of refinement.

Combined with Tim, I'm afraid Apple's being led by a team of followers (as far as innovation's concerned)!! Doesn't it show?


These people have too much on the line; they're not going to give up their positions. I don't know much about corporate politics, but I suppose what needs to happen is the board needs to fire almost everyone at the top. Not because they're incompetent - just because they're the wrong team at this stage in Apple's corporate life. They may not even be stubborn. I think they're incapable of behaving differently at this point in their careers - unless perhaps they're all bumped down to about $100K a year plus some very carefully designed bonus incentives that measure innovation and solid 5-year plans rather than quarterly profits. Any one who really cares would go for this and even embrace this (Steve would, according to his own philosophy) - the rest will just retire!

I'd rec this a hundred times if I could.
 
I just wish I could make this happen, because it affects the whole world. As nice as they (those running Apple) may be in person, they really are being selfish, whether they realize it or not.

Tim Cook should be advocating this kind of change, risking his job to convince the board if necessary. If they don't want innovation he should take all his money with him and go somewhere else that does. He may not be an innovator himself, but he needs to be an advocate for those who are!
 
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