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You did mention reliance on a single vendor as bad management by Target - which is clearly not the case.
Huh? Then what's the point in talking about Apple's sales specifically affecting the quarterly result if that's not the case? Unless he specifically mentioned other non-performing brands as well, the finger pointing at Apple is a lazy excuse coming from a CEO.
 
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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.


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.
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You did mention reliance on a single vendor as bad management by Target - which is clearly not the case.
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Please never go to Sweden - if you would ever travel outside the USA.

Let´s think this through for a second. The CEO said that the 20% drop in Apple revenue is a reason for the drop in quarterly results of Target. This is utter nonsense and it is easy to understand why. Target is first and foremost a discount retailer with a focus on fast moving consumer goods. They earn their money by squeezing their suppliers and selling many products at low margins. Target´s highest margin products likely are the non-fmcg products, but even there the margins are low, due to the fact that they take up a lot of space in the store and storage, product refresh rate is high (especially TVs) and transport costs are high. Actually many of the non-fmcg products are sold at a loss during discount cycles to entice people into the store and make other more profitable purchases.

You can bet that margins for Apple products are also low. Especially since Target is not a go-to store for computing electronics, the way best-buy et al. are.

So, for Apple to play such a large role in the revenue generation of Target as the CEO suggest, each customer should have an Apple product in their cart next to the groceries and other stuff. I don´t know if you guys have ever been at a Target store, but that is definitely not the case.

What this CEO is suggesting is nonsense and only serves to mask the difficulties that he has in competing with Walmart and the like.
 
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Let´s think this through for a second. The CEO said that the 20% drop in Apple revenue is a reason for the drop in quarterly results of Target. This is utter nonsense and it is easy to understand why. Target is first and foremost a discount retailer with a focus on fast moving consumer goods. They earn their money by squeezing their suppliers and selling many products at low margins. Target´s highest margin products likely are the non-fmcg products, but even there the margins are low, due to the fact that they take up a lot of space in the store and storage, product refresh rate is high (especially TVs) and transport costs are high. Actually many of the non-fmcg products are sold at a loss during discount cycles to entice people into the store and make other more profitable purchases.

You can bet that margins for Apple products are also low. Especially since Target is not a go-to store for computing electronics, the way best-buy et al. are.

So, for Apple to play such a large role in the revenue generation of Target as the CEO suggest, each customer should have an Apple product in their cart next to the groceries and other stuff. I don´t know if you guys have ever been at a Target store, but that is definitely not the case.

What this CEO is suggesting is nonsense and only serves to mask the difficulties that he has in competing with Walmart and the like.
The best educated answer at MacRumors for last year
 
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<snip>But when you only update your iPad every other year!!! <snip>

Mac Pro owners read this and weep uncontrollably. Macbook Pro owners read this and weep a little.
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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

Honestly, are Macrumors are now as snowblind as the rest of the Apple board to the decaying Mac lineup?

It really is becoming something when a story referencing outdated products gets turned around in favour of highlighting YET AGAIN an iPhone that is at least a year away and is due to feature technology that has been around in competitor products for years.

Can we honestly imagine Macrumors constantly mentioning a 2017 Macbook Pro refresh in nearly EVERY article? I can see it now when Sierra is released:

"Apple launches MacOS Sierra

Apple today launched MacOS Sierra featuring Siri. Siri is due to get a massive revamp with the iPhone 7. The iPhone 7, due to be launched next year, is rumoured to feature......
"
 
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I wonder if Target had more aggressively advertised Apple products in their stores that the sales wouldn't have been down so much. Nothing like blaming another company during your sales earnings call as a means to rationalize the drop - however true it may be.
 
I shop at Target all the time. I just price match with Amazon and get their price. It's the Amazon's of the world that are killing Target.
 
At Apple Board Meeting: We can't figure out why our sales are down at Target and not at other locations, it's just a mystery why people have stopped shopping there.
 
Apple has seemingly gone from the company that innovates to the company that stagnates and this may play apart in Target stores as well. Apple sales are not just down at Target.
 
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Perhaps it's been said, but the prior quarter, Target was running some significant dollar off sales on iPads and Apple Watches. Anywhere from $50-200. They haven't had those discounts for months, so I can see where sales would have dropped.
 
Oh, whatever. There are several Targets near me and their selection of Apple products is miserable. When I'm looking to buy an Apple product, they never have the models in stock that I want. If you want golf balls or vitamins, Target has got a pretty good selection. If you are looking for an iMac, none of the Target stores near me carries them.

Sure, I guess I could probably order what I'm looking for...or I can drive an extra half-hour and go to an Apple store. Or a BestBuy. This dude can blame Apple all he wants. In the end, he needs to look inward for the real problem.

https://itunes.apple.com/us/app/what-the-forecast-!!/id1031653653?mt=8
 
nope. Same concept applies. Place all your eggs in one basket and lose everything.

The notion that Apple "places all of their eggs in one basket" with the iPhone is ludicrous. If you had a single product that sells more than all of your other products combined, and has dominated your product line for years of course you're going to put an emphasis on it. The iPhone is not their number one selling product because they only pay attention to it. It's the number one selling product because it's the one the customers want the most. Playing to that is not bad management. It's good management.

The "conventional" PC market has been contracting for years, and Apple has more than held their own in the dwindling market. They make more profit from that sector than companies who sell many more units than they do.

If the iPhone disappeared from the face of the earth tomorrow Apple would still be a very profitable company.
 
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Seems to me the CEO is playing for time because sales are down across the store's lines.

If I were an analyst on the conference call, I'd ask him excluding Apple, how were yoy sales.

If his store is this dependent upon a single brand, it's very bad news for the long term outlook for the store. (If Apple products, for whatever reason, stopped selling thru Target, Target's numbers would drop dramatically.)

One to two years ago my mom and sister stopped in a target and were appalled at the scheiss-quality of items on offer; they talked of not going back. They also thought that if Target didn't change this, that other customers would wake up to this and flee the store dooming it; perhaps this (and online shopping) is the next phase in Target's demise.
 
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The notion that Apple "places all of their eggs in one basket" with the iPhone is ludicrous. If you had a single product that sells more than all of your other products combined, and has dominated your product line for years of course you're going to put an emphasis on it. The iPhone is not their number one selling product because they only pay attention to it. It's the number one selling product because it's the one the customers want the most. Playing to that is not bad management. It's good management.

The "conventional" PC market has been contracting for years, and Apple has more than held their own in the dwindling market. They make more profit from that sectors than companies who sell many more units than they do.

If the iPhone disappeared from the face of the earth tomorrow Apple would still be a very profitable company.
Lol if the iPhone disappears Apple would be still be very profitable? Okay no need to try debating with you then.
 
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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.

I live in a very socially liberal area actually, but there were articles I have read stating this had cost them business. But I have not looked in a while, and this might have changed. But keep in mind that even a socially liberal area may have 20% conservative, so becoming political in those areas can still have an impact on sales. It is always good for companies to stay way from political issues as it can only cause issues no matter which side of the paradigm you fall on.
 
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Who here actually has bought Apple products at Target ?

They match amazon prices so i have walked out with lighting cables for $6/ea =)
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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.

I think it's having an impact:

http://www.wsj.com/articles/target-...ut-private-bathrooms-to-all-stores-1471453630

 
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I'm sure the Target sales drop would be totally Apple's fault. It couldn't be, for example, their incredibly shrinking clothing products that get smaller each season for an increasing price. Or the false advertising where one product is advertised in print/on-line and another is sold to you on the floor.
 
While it's unseemly to blame Apple for its financial problems, Target's drop in iPhone sales appears to reflect the larger trend. Target also makes a valid point that the sales slump is due to Apple's lack of innovation. I agree 100%. Apple has not done anything new with the iPhone in years, and has been playing catch up in the size and feature department. It's really sad to see Apple fall so far behind in a product category it pretty much created.

I put the lack of innovation squarely at Tim Cook's door step. He says they are innovative. Bull. Saying you are innovative doesn't make you innovative. Nothing that Apple has done in the last however many years has been innovative. Cook has put a great management team in place, but nobody at Apple has ever filled the creative void left by Steve Jobs.

I believe it's time the Board of Directors looks to replace Mr. Cook with someone that actually has a vision for the company. A super-manager like Tim Cook cannot spur innovation. It's not in his DNA.
 
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.

Yes, of course my "feeling"

Once you get older and decide what things are worth, maybe your perspective changes also.

I refuse to pay designer or brand prices for anything.

Reducing my wants to make purchases values I put on them.

That includes Apple products. No need for the latest, 1 or 2 gen back or refurb store is fine.

Walmart and ALDi for basic food GREAT VALUE brands. Sam's Club for bigger purchases.

Saving or not spending more than necessary does float my boat:)
 
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List of new Apple products for the last 6.5 years:

- Watch



List of new Apple products for next 5 years:

- Car


And both of these have dubious chances of success.


While the premise of this article may be a bit silly (that Apple is reponsible for Target's sales decline) it's a sobering reminder that 'lack of Apple innovation' is not just a perception - it's a fact.


I keep my non-Mac Apple devices up to date because I love the refinements, but the only thing "new" I have is the Apple Pencil - and that's an accessory!

Say you become CEO tomorrow. What new categories will you introduce??
 
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:)


Careful with where you say you shop. They may not let you in an apple store. You are not their demographic! Walmart - yikes!
 
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As a former Apple super-fan it is not hard to understand the lack of sales. Since Apple effectively exited the computer business they have offered little for me to buy. Wrist watches, ghetto headphones and Apple Pay do nothing for me. My iPhone 6 will be sufficient for the next few years. My six-core Mac Pro, quad MacBook Pro and quad mini will last for quite a while. They are all 2012 models whose performance is still plenty fast.

After purchasing two MBPs, two Mac Pros and four minis in about six years I'm just about done with Apple. I am only one consumer but there may be others who feel the same way about Tim's Apple.
 
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