Target Says Sales of Apple Products Are Down 20%

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Posted August 18, 2016 at 12:22am by iClarified

During its earnings called today, Target said that sales of Apple products were down 20% last quarter, reports Reuters. The company lowered its fiscal year profit guidance on Wednesday due to lower demand for electronics and a weak start to its revamped grocery business.

Chief Executive Brian Cornell said customer visits declined across product categories during the quarter but electronics sales fell by a double-digit percentage rate and accounted for about two-thirds of the overall decline in sales at stores open at least a year. About a third of the decrease in electronics sales stemmed from reduced demand for Apple products, which were down more than 20 percent.

Despite the drop in sales, the retailer says it's working with Apple to capitalize on new product launches during the second half of the year.

Newly appointed Chief Merchandising Officer Mark Tritton will spend time with Apple to make sure "we're putting the right plans together for the back half of the year, that we're ready to capitalize on their new innovation that they will be bringing to the market."

Target's shares closed down 6.4% at $70.63.

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Target Says Sales of Apple Products Are Down 20%

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gamerscul9870 - August 18, 2016 at 4:17pm

Couldn't agree more Kevin. Despite the people that shop at Walmart, for the longest time, you couldn't use all the products they were displaying out until last year compared to target showing much more than just phones, tablets, etc., of course the snack area they have, all the furniture you can try out, and anything else you can think of.

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Gromit - August 19, 2016 at 3:04am

I'd like a liberal progressive to argue that!

Mens - August 18, 2016 at 10:00am

Interesting. ..

Mens - August 18, 2016 at 9:22am

Have target got any of their shops in Africa?

N3 - August 18, 2016 at 8:05am

...and even with new products it will still go down! The only product i will ever used is the macbook pro, i live the ecosystem but they are pissing me off with iphone's politic...the last samsung (note 7) is sold with 2 adaptors right in the box and ready to use by the buyers...will apple sell the iphone 7 with 3mm adaptors or lightning to usb adaptors? I guess NO, rather they will charge us for 25bucks for that...crazy

gamerscul9870 - August 18, 2016 at 12:48pm

From what we can tell from a whole new iPhone (that's not an S version) I don't think it will do that bad based on how well they held up.

Gabe - August 18, 2016 at 1:43am

Well duh. Newer models are coming out in about a month. Why would people by the older ones.

drigomarki - August 18, 2016 at 1:15am

Any anybody surprised?

gamerscul9870 - August 18, 2016 at 1:38am

It doesn't shock me at all. Not like I expected it to happen.