Sales of Apple Products Down 20% at Target

[MH01]

Um, does Target even sell Macs?

My first paragraph is in relation to target.

My second paragraph is in relation to why I have not bought a Mac from any retailer, be it brick or online .

To answer your question , I'm not sure what target sells internationally, maybe they sell macs somewhere though I was not attributing my personal preference to target sales, and me not buying a Mac ....given I don't live in the US having an impact

 

[24601]

So basically a decline in Apple sales contributed 0.002333% to Target's 1.1% same store sales decline. Why mention Apple by name? What comprised the other 2/3rds drop in electronics sales?

No, Apple was ~20% of that 1.1% decline or just over one fifth of the decline. That is worth noting in an earnings call. It is a meaningful, quantifiable drop attributed to a single SKU or small group of SKUs. I have no problem with Target highlighting it.

 

[MH01]

Until apple finally release a curved screen oled phone, then you'll be all over it because apple will tell you it's what you need.

Let's see how they do with the removal of the headphone jack before we go something as advanced and potentially useful like a curved screen

 

[Larry-K]

Dear Target: It's a joke buying 'technology' at my local store.

Your Apple Watch selection was black, or white. Seriously, black, or white. No other colors. None. Even online, you listed the 'Apple Watch' on the website months ago, and yet it couldn't be ordered. Hmm...

iTouch: The last time I was in, there was just pink. That's it. Pink. Um, no...

Shuffles: Who buys the Shuffle? You had a bunch of them.

iPads: No cellular models. At. All. Most others where Mini's, or the smallest of the Air's. At one point, the display case still had a gen one iPad. Really... It disappeared sometime late last year.

The iPod display has a spot for the Classic too, without the Classic.

It's an embarrassment. I went looking for watch bands. Black, or white. Really?

Some of that could be Apple dumping junk on you, but come on, you can only hide behind Apple for so long...

Sorry...
[doublepost=1471473040][/doublepost]

I think they had Apple before Walmart.

Walmart sells Apple Stuff?

 

[polee]

Apple's detractors have managed to create such a negative mindset that is going to make the iPhone 7 a "failure" even before it is released. Apple's challenge is to reverse this mindset. So far it appears that Apple may not succeed, I really hope that Apple will surprise us with some features on its smartphone that will us rush out in droves to get it.

 

[Denmac1]

Dear Target: It's a joke buying 'technology' at my local store.

Your Apple Watch selection was black, or white. Seriously, black, or white. No other colors. None. Even online, you listed the 'Apple Watch' on the website months ago, and yet it couldn't be ordered. Hmm...

iTouch: The last time I was in, there was just pink. That's it. Pink. Um, no...

Shuffles: Who buys the Shuffle? You had a bunch of them.

iPads: No cellular models. At. All. Most others where Mini's, or the smallest of the Air's. At one point, the display case still had a gen one iPad. Really... It disappeared sometime late last year.

The iPod display has a spot for the Classic too, without the Classic.

It's an embarrassment. I went looking for watch bands. Black, or white. Really?

Some of that could be Apple dumping junk on you, but come on, you can only hide behind Apple for so long...

This!
I work as a part time merchandiser for another company and am in Target stores every week.

As a consumer, I do my best to avoid the store. Their 'Team Members' that stock the shelves literally throw the stuff at the shelves. There is minimal product rotation for the majority of their grocery section.

From a vendor perspective, their ability to keep stock levels up is very poor. If you don't have it, you can't sell it. Their electronics section is poorly maintained and minimally staffed. i think if you were to look at the department overall, there is at least 20% of out of stock items. The amount of Apple SKU's is a very low percentage of their overall department. If I were to buy an Watch, I sure wouldn't be buying it at Target.(yes, I own one) They are not a destination store for electronics, but mostly impulse when Mom or Dad need some pants or shoes and they just happen to walk by the electronic department and go, 'Oh, by the way...'

Although, us, on this forum, are painfully aware of the shortcomings of Apple updates, but for this CEO to blame Apple for their loss in sales, I believe, is unfounded.

 

[Larry The L]

Slap on the face for Apple!

I just sold all my Apple stock (about 1000 shares) based upon this article. Clearly this is the end of Apple. No iPhone 7 for me.

 

[kingofwale]

Um, does Target even sell Macs?
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Target sells A LOT more than just Apple products or electronics for that matter. I'm highly skeptical that a 20% drop in Apple sales would be the sole cause of a bad quarter. And if it's not why name drop Apple specifically?

Barely... but again, Apple doesn't even sell Macs

 

[JGIGS]

There are a few reasons why Apple is struggling:

1. These types of products are clearly in the mature end of its life cycle. Performance gains and must have features are less and less for every next gen smart phone, tablet and laptop etc. So people don't need to upgrade as often as they use to.

2. Google, Samsung, and Android have clearly caught up and Android is for the most part is as good and in many ways better than ios. Android also holds the advantage of having it's standard apps as multi platform and web applications. With more people switching to Android people apps like imessage and facetime are less important and prestigious as they use to be when most people you knew had an iphone.

3. Price/competition for hardware Apple is also now the slowest to change and add important features. Late on the larger phone, fast charging, wireless charging, water proof, OLED screens. Maybe not must upgrade reasons but certainly wouldn't hurt. Also prices are so much higher than comparable devices at half the price. Moto, Nexus, one plus etc are all very good phones that meet most peoples needs. Is it worth paying more than double for an iphone? Not for me especially as a Canadian dealing with a weak dollar and to keep my affordable plan I have to upgrade at full off contract device price (very common in Canada at least).

 

[ILikeAllOS]

Read the summary again. It says Apple products sold at Target fell 20%. It doesn't say Target sales are down 20%

That's not what he said though?
He was talking about this part of the article.

...and blamed poor Apple sales for Target's disappointing Q2 earnings results

 

[Kevin2055]

Apparently but not being mentioned and appreciated, Apple products contributed most of electronics sales at Target.

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.

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

 

[TheFluffyDuck]

Apple has been stale since Steve died. Other companies products have better screens, more grunt, better battery life, and thats just the basics. They are also putting their phones into VR glasses, wireless charging, water resistances etc.

I really like the Apple eco system. I hate viruses, malware and the bloat in windows. But if they are still going to put integrated graphics cards in their laptops and sell it as a "macbook PRO" at their asking price, then I am going to have to seriously reconsider a switch.

 

[Kevin2055]

I don't think apple's hardware is behind Samsung.

 

[xxxsteveoxxx]

It's because Target always has awful selection and stock. Most Targets in my area (DC) have one small cabinet with a glass door that houses a couple iPads and maybe a couple Apple watches. Sometimes an iPod touch. I was browsing last week and would've purchased a red 42mm band but all they had were 20 black sport bands. Why even consider Target when there are 3 Apple Stores in my area?

 

[oliversl]

No new MBA (best selling Mac) and same iPhone design for 4 years, what do you expect?

 

[Kevin2055]

Isn't removing the headset hole is a innovation ? Apple's is very good at removing holes.

 

[Bubba Satori]

Tim should give another interview and explain how the pipeline of innovation works.
Target obviously doesn't understand how to sell really old stuff at really high prices.
Dummies.

 

[s15119]

Apple lacks newness and innovation to their products, they're losers and a product of yesterday. Sad!

hahahahahaha, Losers? Hardly posted quarterly revenue of $42.4 billion and quarterly net income of $7.8 billion, or $1.42 per diluted share.

What a way to lose.

 

[wbeasley]

Perhaps we've reached Peak Apple product... I have way to many iPods, iPads and iPhones. See no new product worth paying to upgrade to.

No love to iPods anymore... I was hoping 2 years ago they would have released larger screen versions. Sadly, no. iPods make great portable non-phone devices. If they released bigger screen, larger capacity devices they could own the gaming market. The thinner design would be good for eBooks too. I dont like wasting battery reading my phone in bed (and I don't want phone calls either so a non-phone device would fit that need too!)

Thought Eddie Cue roadmapped Apple's greatest new product list over a year ago. What happened? Nothing seems to stick in my mind as "must have".

 

[Bubba Satori]

I hate viruses, malware and the bloat in windows.

1996 really sucked.

 

[npmacuser5]

Compared to Best Buy a very poor electronic experience for Apple and for that matter any technology related products. Ultimate experience is the Apple Store. Not surprised with the results from Target.

 

[s15119]

I would never consider buying apple products at Target. It's Target to blame, not Apple.

 

[zulkiflim]

What lack on Innovation??

india say Apple is at the forefront on technology,using a 500Gig hard disk on a Mac Book and call it PRO.
Damn if that is not INNOVATION.....

 

[mtcowdog]

Maybe Target is using Apple as a scapegoat. That's certainly possible. I love Target but haven't bought a single technology item there in decades. But, from everything I have read, Apple is hard core about retail relationships. I wouldn't be surprised if Apple brought down the hammer on Target for sales of their products, with the "sign on the line" deal being about big sales opportunity. If a company like Target buys into that and the outcome doesn't pan out, I could understand the venting. The big dog can leverage sweet deals, but when results don't pan out, there is a price to be paid. Big dog's leverage does not come without accountability.

 

[masterbaron]

I believe ... Rope-a-Dope boys and girls! Apple has made so much money they're actually making it look like they're "hitting the canvas" when more than likely they are just resting letting the market swing and speculate - letting others tout their coming wares and progress (revealing much) - then just when everyone thinks Apple has lost it's luster they will come with the knock-out in 2017.

Just watch that missing headphone jack issue in another 14 months or so - and that OLED screen or SIRI integration with your driverless car (smile).

Just wait - there's no way Apple doesn't know how they look - they're looking that way for a reason.

 

[thekev]

Does anyone even shop at Target any longer? Every since they decided to become verbally political the one near me is almost vacant most of the time. I wonder if this may be contributing to the down sales. Few customers at the store= fewer items sold.

Do you live in a really small/socially conservative area? I haven't personally noticed any difference, but I don't shop there very often. I'm skeptical that this could impact their sales in any way.