Apple Announces Closure of China Store
(MENAFN) For the first time since its entry into China over 15 years ago, US tech giant Apple has announced the closure of one of its retail stores in the country. This decision comes amid declining sales in Apple’s second-largest market, intensifying competition from local brands, and growing trade tensions between the US and China.
On Monday, Apple confirmed it will close its Parkland Mall store located in Dalian’s Zhongshan District, in northeastern China, on August 9.
“We have made the decision to close our store there,” Apple said in a statement cited by several media outlets.
In 2024, Apple operated 57 stores across China, representing over 10% of its global retail locations. However, the company has encountered increasing difficulties, with sales in China dropping for six consecutive quarters. Last year, annual revenue in the market fell to $66 billion, nearly 10% lower than its peak in 2022.
The South China Morning Post reported that domestic Chinese smartphone manufacturers including Huawei, Xiaomi, and Vivo have steadily eroded Apple’s market share in the world’s largest smartphone market. Tech analytics firm Canalys noted that Apple ranked fifth in China this spring, capturing a 15% market share — down from nearly 18% the previous year.
Although the closure of the Dalian store was officially attributed to mall restructuring, analysts see it as part of a broader strategic shift. China, where the majority of iPhones are assembled by suppliers such as Foxconn, has been subjected to the most severe US tariffs yet. Consequently, Apple has started relocating production to countries like India and Vietnam to reduce risks and manage rising costs.
The trade standoff between Washington and Beijing has been ongoing for years, intensifying in April when US President Donald Trump imposed 145% tariffs on select Chinese imports as part of a wider campaign against more than 90 trading partners. China retaliated by imposing 125% tariffs on US goods and restricting exports. Trump later announced a truce following the back-and-forth tariff hikes that unsettled global markets.
This week, both nations met for a three-day summit in Stockholm aimed at prolonging the tariff ceasefire and easing economic tensions.
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