Apple to Close a Store in China for the First Time – Here’s Why

Apple has announced it will close its Parkland Mall store in Dalian on August 9, 2025, marking the company’s first-ever physical store closure in mainland China since entering the market nearly two decades ago.

“Operational Changes” at Mall Cited as Reason

According to a report from the South China Morning Post, Apple attributed the closure to operational changes at Parkland Mall, which was recently rebranded as Intime City under new management. The company also indicated that multiple retailers have exited the mall, signaling a larger shift in the local retail environment.

Employees to be Relocated to Nearby Store

Apple has assured its employees that they will be offered positions at another outlet just three kilometers away at Olympia 66 Mall in Dalian. This decision reflects the company’s effort to maintain continuity for staff while adjusting its retail presence.

Apple Emphasizes Commitment to the Chinese Market

While the closure is unprecedented for Apple in China, the company highlighted that it is an isolated decision and does not indicate a broader withdrawal from the market.

Apple currently operates 46 stores in mainland China and 56 stores across Greater China. It also reaffirmed its plans to open new locations in Shenzhen, Beijing, and Shanghai, reinforcing its long-term commitment to the region.

Intensifying Competition in China’s Smartphone Market

The Dalian store closure comes at a time when Apple is under mounting pressure in China’s competitive smartphone market. During the April–June 2025 quarter, Apple slipped to fifth place in market share, shipping 10.1 million units and accounting for only 15% of total sales.

Domestic brands Huawei, Vivo, Oppo, and Xiaomi all outperformed Apple during this period. Huawei’s strong resurgence, especially with its Mate series, has particularly impacted Apple’s performance in the premium smartphone segment, according to reports by 9to5Mac.

Analysts Point to Multiple Market Challenges

Industry analysts believe Apple’s declining market share is due to several factors:

• Intensifying competition from domestic brands offering high-end devices at competitive prices

• Growing nationalistic sentiment among Chinese consumers, who are increasingly opting for homegrown brands

• A broader economic slowdown that has made buyers more price-conscious

These challenges have eroded Apple’s dominance in China, a market that was once one of its strongest globally.

Retail Strategy Shift Toward Flagship Stores

As consumer behavior evolves, Apple is recalibrating its retail strategy. Rather than expanding its network of smaller outlets, the company appears to be focusing on high-traffic flagship locations that enhance the customer experience and strengthen brand presence.

This approach also aligns with Apple’s broader strategy of integrating its digital ecosystem and offering premium in-store services like workshops, tech support, and immersive product demonstrations.

Tactical Adjustment, Not a Strategic Retreat

Although the Dalian closure marks a first for Apple in China, analysts view it as a tactical move rather than a sign of retreat. Apple remains one of the world’s most profitable technology companies, with robust sales in other global markets.

By concentrating resources on flagship stores and leveraging its digital platforms, Apple aims to remain competitive in China despite growing challenges from local rivals.