Sales of Apple Products Down 20% at Target

[FJResto]

This doesnt surprise me being an Apple fan. If and when I buy Apple devices or products I dont think of Target as a place to buy them at. Even if they were cheaper there. I just dont think of Target when I need to buy Apple.

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

 

[allanfries]

Cuz every body got dat thang!
Like duh! this is news?

 

[Sedulous]

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.

No, I won't. It is a really silly "feature". Why would anyone want a warped screen? Same deal with curved OLED televisions. Yes, movie screens are big and curved but that is because of the projection optics involved (theater screens are curved so that the screen center and edges are the same distance from the projector; else some part of the screen would lose focus). A phone screen does not need to be curved and actually makes it less useful, more expensive, and weaker. I'd rather see Apple maintain a flat screen but with thin bezels. Use that extra internal space for something useful.

 

[MonkeyDavid]

This doesnt surprise me being an Apple fan. If and when I buy Apple devices or products I dont think of Target as a place to buy them at. Even if they were cheaper there. I just dont think of Target when I need to buy Apple.

I agree. I have purchased an iPad at Target when they were the only one who had it Apple is doing better at forecasting demand and ramping up production so the wait times aren't as long, and the online pre-ordering is easier. So now I buy from Apple, not Target. I don't buy any electronics from Target.

 

[macsrcool1234]

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.

It specifically says sales of Apple products are down.....

 

[Blaze4G]

Hope you're attempting to be funny and ironic. Comparing the CEO of the maker of the iPhone and the CEO of a store that sells hundreds of thousands of products other than the iPhone on their dependence of the sales of iPhone is a little ludicrous, wouldn't you say?

nope. Same concept applies. Place all your eggs in one basket and lose everything.

 

[ksnell]

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.

Shareholders don't vote for CEOs. Shareholders vote for Board of Directors who hire CEOs.

 

[TomMcIn]

At least Apple has not left Canada with their tail between their legs like Target. Target could not even keep their shelves stocked and now they are blaming Apple for the woes. If Apple is so bad, why hasn't Target just up the peddling of Samsong and its ilk.
[doublepost=1471495804][/doublepost]

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 read "and blamed poor Apple sales for Target's disappointing Q2 earnings results" note "Target's disappointing Q2 earning results".

 

[peterdevries]

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

I think it is you that needs to read it again. The CEO blames the decline in Apple sales for the decrease in sales performance of Target.

Target has a serious problem if they rely to such an extent on a set of Apple products that do not even represent 5% of their total floor space and product line. It is more likely that this CEO is talking nonsense, since it is impossible for Apple to have such an impact on Target's bottom line if you know how Target makes its money.

 

[44267547]

I dont want an Apple car, or an Apple Watch, or any wearables, or pencils, or oversized phones.

Apple has more people working for them now than they ever did. WTH are they doing? They cant even upgrade their Mac hardware regularly. The iPhone is prolly going to stick with a 2 year old design. They didn't even bother upgrading the iPadAir2 last year. MacOS' biggest new feature is Siri which debuted 5 years ago on the iPhone, and iOS' biggest change in 9 years was a new theme which made the OS look "clownish".

Good grief. /endrant

I miss Steve.

First, what does the amount of employee's have to do with their MacBooks? Only Apple knows the reason for their delay with the MacBook Pro's. Unless you can speak for Apple's employee status?

And the iPad Air line up is now the iPad Pro line up. It would not make sense for Apple to continue with the Air line up, being the Pro line is their flagship with the 9.7/12.9. Too many iPads is only going to confuse the consumer and fragment their production with the iPad. Essentially the Air 2 is the 9.7 Pro.

And did you want to add anything to Siri besides it is one of the newest features on MacOS? I have no idea where your going with that. So, because the iPhone has had Siri approximately five years ago, this is an embarrassment to the Mac OS? How does the newest iOS look 'Clownish?' Please elaborate.

And lastly, Steve can't help you, so please stop referring to him as if you personally knew him or you fully understood his hand in Apple from past or present. That meme is over used.

 

[pdaholic]

I just wish they'd quit hyping up the 2017 iPhone already.

Everybody will be really sad when the 2017 model is just another "s" upgrade.

Will we all finally give up on Apple when that happens?

 

[Sunny1990]

First, what does the amount of employee's have to do with their MacBooks? Only Apple knows the reason for their delay with the MacBook Pro's. Unless you can speak for Apple's employee status?

And the iPad Air line up is now the iPad Pro line up. It would not make sense for Apple to continue with the Air line up, being the Pro line is their flagship with the 9.7/12.9. Too many iPads is only going to confuse the consumer and fragment their production with the iPad. Essentially the Air 2 is the 9.7 Pro.

And did you want to add anything to Siri besides it is one of the newest features on MacOS? I have no idea where your going with that. So, because the iPhone has had Siri approximately five years ago, this is an embarrassment to the Mac OS? How does the newest iOS look 'Clownish?' Please elaborate.

And lastly, Steve can't help you, so please stop referring to him as if you personally knew him or you fully understood his hand in Apple from past or present. That meme is over used.

Tim cook has dragged away iPhone from steve jobs vision,he is just coping features from android phones nothing new nothing revolutionary nothing innovative seems like to Tim Cook it's just number game

 

[44267547]

Tim cook has dragged away iPhone from steve jobs vision,he is just coping features from android phones nothing new nothing revolutionary nothing innovative seems like to Tim Cook it's just number game

I agree the iPhone has strayed away from what is considered to be revolutionary, but Apple has not copied Samsung's Phone features by any means. Samsung's Galaxy line is water proof, wireless charging capable, and has expandable memory, with OLED display.

If anything, Apple is behind. I'm hoping the tenth anniversary iPhone changes this. And maybe, the iPhone 7 will have some updated features, such as water proofing and maybe wireless charging. I guess we will find out.

By the Way, did you read the rumor today, there saying the new iPhone will be labeled the 'iPhone 7.' As of now, it may not be called the '6ME' as you were thinking.

Good to hear from you Sunny.

 

[lionsy]

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.

They can't help if one of their major revenue streams is apple products, can they? You could blame him for relying on one product line too much, but at the end of the day - as I'm sure he is now well aware - you can't force the customer to buy what they don't want.

 

[Larry-K]

Apple should rebrand the Mac line as "classic".

Well, it does resemble a Greek tragedy.

 

[ssgbryan]

I dont want an Apple car, or an Apple Watch, or any wearables, or pencils, or oversized phones.

Apple has more people working for them now than they ever did. WTH are they doing? They cant even upgrade their Mac hardware regularly. The iPhone is prolly going to stick with a 2 year old design. They didn't even bother upgrading the iPadAir2 last year. MacOS' biggest new feature is Siri which debuted 5 years ago on the iPhone, and iOS' biggest change in 9 years was a new theme which made the OS look "clownish".

Good grief. /endrant

I miss Steve.

I suspect they are busy with designing the interior of the new campus.

 

[otternonsense]

I just wish they'd quit hyping up the 2017 iPhone already.

Exactly this. Because the obvious fix for a 20% sales dip in Q2 2016 is to ask customers to anticipate a mythical phone in Q4 2017.

 

[Xiroteus]

No one wants stale bread at caviar prices.

Basically. I was just looking at the iPhone SE based on the size (I like large and small phones) and even if I can get past Apples limitations (no easy file transfer that is not cloud or wifi based, no file system, no drag and drop, no SD card slot etc..) half the specs were lower than my three year old phone.

 

[Mildredop]

I just wish they'd quit hyping up the 2017 iPhone already.

Who is "they"? Target aren't hyping it up. Apple aren't hyping it up. So who is?

 

[Sunny1990]

I agree the iPhone has strayed away from what is considered to be revolutionary, but Apple has not copied Samsung's Phone features by any means. Samsung's Galaxy line is water proof, wireless charging capable, and has expandable memory, with OLED display.

If anything, Apple is behind. I'm hoping the tenth anniversary iPhone changes this. And maybe, the iPhone 7 will have some updated features, such as water proofing and maybe wireless charging. I guess we will find out.

By the Way, did you read the rumor today, there saying the new iPhone will be labeled the 'iPhone 7.' As of now, it may not be called the '6ME' as you were thinking.

Good to hear from you Sunny.

Whatever they may call it doesn't matter,Damn loosers!! (if it's named iPhone 7)i think i am going to buy this booring iPhone later this year maybe 4.7model

 

[r3m1]

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.

Think harder - it is the sales drop in Apple products at Target, not Target overall. So yes, the gentlemen has a point that Apple's lack of introducing compelling offerings and abysmal future outlook is hurting Target's sales - marketing teams both at Target and Apple don't seem to able to resolve this.
[doublepost=1471502944][/doublepost]

I didn't say Target sales to be down 20%.

You did mention reliance on a single vendor as bad management by Target - which is clearly not the case.

 

[Mullerman]

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

[doublepost=1471503928][/doublepost]'Guests' ..... Americorp doublespeak does make you laugh, 'mission statements' a decade ago became 'on a journey' now customers as guests .... pitiful.

 

[plexdk]

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.

Why would anyone buy an iPad every year?

So this means, I have to buy a new iPhone, a new iPad, a new Apple Watch, a new MacBook every year?

The market has been fed, now its full, and we only upgrade when we feel like the old device can't do the job anymore. A Mac has like 5-6 years life time in it - at least..

The people who are left now, are people who either swear to android or swear to apple.. and then some flux in between. I don't think we'll see a massive upgrade spree until apple releases something "revolutionary", as a redesigned glass iPhone 8 or something

 

[Danilo - Italy]

Lack of "newness" and "innovation"? But we have the Rose Gold and three different iPhone and iPad sizes

 

[otternonsense]

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.

If Tim Cook had become CEO 10 years ago, the iPhone (had it ever existed) would be a Rose Gold 2002 iPod Classic and cost as much as a 2015 MacBook Pro. Good grief.