“Sales were well below the results we would expect over time,” Target CEO Brian Cornell told analysts on a conference call. Cornell assigned three things in particular to Target’s stumbles. First, sales of Apple (AAPL) products plunged 20%. “It’s a broader story across the product suite,” said Cornell when asked about the problems selling Apple gear. Tepid sales of Apple products drove a double-digit percentage sales decline in the company’s electronics business.
Cornell said Target is working closely with Apple to improve performance, but didn’t disclose specifics. Two spokespeople at Apple didn’t immediately return a request for comment.
The news of a 20% sales drop at such a major retailer is no laughing matter. Apple is currently gearing up for a secretive event next month in which it’s expected to announce the new iPhone 7, as well as a completely redesigned MacBook Pro lineup.
Those new products can’t hit store shelves fast enough for Target, which is clearly feeling the effects of Apple’s aging product lineup. The company posted disappointing results this morning as it stuggles with weak performance at its brick-and-mortar stores.
Apple shares fell $0.74 (-0.68%) to $108.64 in Wednesday morning trading. AAPL has gained 3.57% since the start of 2016.