Apple to Close Store in Northeastern China Amid Economic Challenges
Apple has announced the closure of a store in northeastern China, marking the first time it has shut down a retail location since entering the country in 2008.
The tech giant revealed on Monday that its store in Dalian City’s Parkland Mall will cease operations on Aug. 9. Locals on social media have noted the struggling nature of the mall, citing the closure of other prominent brands like Michael Kors and Armani.
Apple spokesperson Brian Bumbery explained, “Due to the departure of multiple retailers at Parkland Mall, we have decided to close our store. We have valued our service to the Dalian community, and our team members will have opportunities to continue with Apple.”
This development underscores the challenges faced by China’s economy, primarily due to subdued consumer spending. The government has initiated programs to boost purchases of items including smartphones, washing machines, and electric vehicles. While these programs have increased spending, economists caution about the sustainability of the impact on consumption.
Apple’s struggles in China have persisted, with declining sales over six consecutive quarters. In the previous year, the company’s revenue in China was reported at $66.95 billion, a drop of nearly 10% from its peak of $74.2 billion in 2022.
Rival Chinese brands such as Huawei, Xiaomi, and Vivo have been chipping away at Apple’s market share in the world’s largest smartphone market. According to Counterpoint Research, Apple’s share of smartphone sales in China decreased from 17.9% to 15.5% over the past year.
Despite the closure, Apple will maintain operations at its other Dalian store in Olympia 66. Additionally, the company is set to open a new store in Shenzhen later this month, aiming to end 2025 with a total of 58 stores, the same number it started the year with.
This article was originally published in The New York Times.
