Apple announces closure in its second largest market
(MENAFN) For the first time since entering the Chinese market over 15 years ago, Apple has announced the closure of one of its stores in China. The decision reflects ongoing challenges as sales decline in the company’s second-largest market, local competitors gain ground, and US-China trade tensions persist.
Apple revealed on Monday that it will close its Parkland Mall store in Dalian’s Zhongshan District on August 9.
“We have made the decision to close our store there,” the company stated, as reported by multiple news outlets.
Last year, Apple operated 57 stores across China, accounting for more than 10% of its global retail locations. However, the company has struggled with shrinking sales in China for six consecutive quarters, with annual revenue falling to $66 billion in the previous year—almost 10% below its peak in 2022.
Chinese smartphone makers such as Huawei, Xiaomi, and Vivo have steadily eroded Apple’s market share in the world’s largest smartphone market. Research firm Canalys reported that Apple held a 15% market share in China this spring, down from nearly 18% the year before.
While the store closure was officially attributed to mall restructuring, analysts see it as part of a broader strategic shift. Despite most iPhones being assembled in China by suppliers like Foxconn, Apple is gradually moving production to India and Vietnam to reduce risks and manage costs amid escalating tariffs.
The US and China have been embroiled in a long-standing trade dispute. The situation escalated in April when US tariffs of 145% were imposed on certain Chinese imports targeting numerous trading partners. China retaliated with 125% tariffs on US goods and export restrictions. A temporary truce was later declared by the US after the tariffs triggered instability in global markets.
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