Apple has shuttered its store in China, marking its first domestic closure amid challenges in key smartphone markets.
The company closed its northeast China location at Parkland Mall in Dalian City on August 9th.
This site was Apple’s inaugural store in China, operating since the flagship opened in 2008.
The mall is facing difficulties, likely due to a downturn in consumer spending in China, leading several retailers to exit, including luxury brands like Michael Kors, Armani, Coach, and Hugo Boss.
“We decided to close our stores in light of several retailers leaving Parkland Mall,” said Apple spokesman Brian Banbai. “We value serving the Dalian community, and our team members can continue their roles at Apple.”
The decline in consumer spending in China has been heavily criticized and has adversely affected the global luxury market.
In response, the Chinese government has initiated various stimulus programs aimed at boosting spending on smartphones and electric vehicles.
However, Apple’s declining performance in China isn’t a recent development. Reports indicate a drop in sales for six consecutive quarters.
Last year, Apple earned $66.95 billion in its second-largest market, a nearly 10% decrease from the $74.2 billion peak in 2022.
This represents Apple’s largest sales decline in the region, with decreases across all four quarters, culminating in a significant 25% drop in the final quarter.
This disappointing performance has also resulted in Apple losing its title as China’s top smartphone seller.
Rival tech companies like Huawei, Xiaomi, and Vivo are intensifying competition, making it challenging for Apple to retain its market share.
A survey from Tech Research Firms CounterPoint indicated that Apple’s share of smartphone sales in China fell to 15.5%, down from 15.9% last year.
Despite this setback, Apple plans to keep operating its other Dalian store in the Olympia 66 shopping mall. The company is also set to open a new location in Shenzhen this month, aiming to end the year with a total of 58 stores in China.
