The largest department store chain in Australia, Myer, on Friday announced its decision to stop selling Apple (AAPL) products since they are “unprofitable”, hinting at a move to higher-margin items.
However, this puts Apple in a spot. With reports of weakening demand for the iPhone, along with slumping China sales, this latest news does not bode well with the tech giant’s prospects on the Eastern part of the world.
Myer’s decision means that its 16 offline stores as well as the online channel will stop selling Apple products.
Back in January, Myer reported a swing back to profit on its growth in the online retail sphere, along with cost-cutting measures.
For the six months ended Jan. 26, Myer posted a net profit of A$38.4 million, versus a year-ago loss of A$476.2 million.
In Australia, Myer operates 61 outlets.
Earlier in February, Apple stock got a jolt Apple Inc.’s after reports emerged that Warren Buffet’s Berkshire Hathaway (BRK) cut down its stake in the company.
According to a regulatory filing, Berkshire’s stake in Apple has been reduced by 1% and now stands at 249.6 million shares for the last quarter of 2018. This compares to 252.5 million shares in the earlier quarter. This reportedly brings the value of Berkshire’s stake to below $40 billion.
In its previously reported quarter, iPhone sales slumped 15%, missing consensus estimates.
Earlier this week, on Monday, the Apple stock gained with the surprise launch of the new 10.5-inch iPad Air and the 7.9-inch iPad Mini.
With the smartphone market nearing complete saturation, Apple could be feeling the noose tightening. The market will be on the lookout if these new releases would indeed help the tech giant get back on its record-breaking rally.