Apple Closes First Mainland China Store Amid Market Challenges

Abhi Soni

Apple is closing its retail store in Parkland Mall, Dalian City, on August 9, 2025, marking the first time the company has shut down a directly managed store in mainland China. The move reflects challenges in the Chinese retail and smartphone market, with decreasing foot traffic at Parkland Mall and a broader decline in consumer spending affecting Apple and other retailers. The Mall recently rebranded as Intime City under new management, and multiple retailers have left, leading Apple to decide against renewing its lease.

Despite this closure, Apple’s presence in Dalian will remain through another location, the Olympia 66 store, which will continue operations. The company plans to open a new store in Shenzhen later this month, aiming to maintain its total number of retail locations in Greater China at 58 by the end of 2025.

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Apple’s struggles in China come amid mounting competition from strong local brands such as Huawei, Xiaomi, Vivo, and Oppo. Huawei, in particular, reclaimed the top spot in China’s smartphone market in Q2 2025, shipping 12.2 million units and capturing 18% market share. Apple shipped 10.1 million units during the same period, holding a 15% share but ranking behind local rivals.

The closure is part of a shifting retail landscape in China, where consumer demand is softening due to economic pressures including deflationary trends and weaker consumption, despite government stimulus efforts. Apple is adapting by selectively closing stores in underperforming locations, while investing in new stores in more promising markets.

This first-ever store closure on the Chinese mainland signals both the challenges Apple faces in its second-largest market and its strategic recalibration to the evolving retail environment.

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