WASHINGTON : The store, located in Dalian’s Parkland mall (now rebranded as Intime City), will permanently close next week, leaving Apple with just one remaining outlet in the city of 7.5 million people. Though Apple attributed the decision to “operational changes” at the mall, the closure comes against the backdrop of a broader market retreat in China.

In Q2 2024, Apple’s China sales dipped 2.3% to $16 billion, missing analyst expectations. Year-on-year, sales in Greater China fell 8% to $66.95 billion, signaling waning momentum in what was once one of Apple’s strongest markets.

Meanwhile, Chinese smartphone makers are making a fierce comeback. Huawei reclaimed the top spot in Q2 2024, while Vivo, Oppo, and Xiaomi held strong market positions. Apple shipped 10.1 million iPhones during the same period, tying with Xiaomi for a 15% market share and trailing its local rivals.

The shift reflects deeper currents in China’s economic landscape. With deflation concerns, sluggish retail sales, and falling property values, consumers are turning to high-spec, lower-cost domestic alternatives. National pride and increasing preference for “Made in China” products are also influencing buying habits.

Despite the Dalian shutdown, Apple maintains that it’s not pulling back entirely. The company still operates 57 stores across Greater China and plans to open a new store in Shenzhen on August 16, signaling a more strategic, selective retail footprint.

Employees impacted by the Dalian closure will be reassigned to other locations, Apple confirmed.

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