Apple closes a store for the first time in the biggest smartphone market on Earth

Apple is set to close one of its retail stores in Dalian (northeastern China) on August 9, as reports read, highlighting that Cupertino has been in China from 2008 onwards. The soon-to-be closed store is located in Parkland Mall, and it’s being shut down due to a broader decline in the mall’s foot traffic. Other brands (like Michael Kors and Armani) have also left.

The report claims that this move reflects broader challenges in China’s economy, where consumer spending remains weak despite government efforts to boost consumption through trade-in programs and subsidies for items like smartphones and electric vehicles.

Apple is also facing mounting pressure in China, its second-largest market, as local competitors such as Huawei, Xiaomi, and Vivo continue to eat into its market share. The company’s sales in China have been falling for six straight quarters, with revenue dropping nearly 10 percent last year compared to its 2022 peak.

Despite the closure, Apple will maintain a presence in Dalian through another store and plans to open a new store in Shenzhen this month. With the addition, Apple expects to end 2025 with the same number of retail locations in China – 58 – as it started the year.

Image by PhoneArena

While Apple faces a slowdown in sales, domestic brands continue to gain momentum. Huawei, in particular, reclaimed the top spot in China’s smartphone rankings during the second quarter of 2025, shipping 12.2 million units and capturing 18% of the market, according to research firm Canalys. Huawei’s return to the top comes despite an overall dip in smartphone sales across the country.

Other Chinese brands also posted strong numbers: Vivo took second place with 11.8 million units, followed by Oppo and Xiaomi. Apple, though still in the top five, came in last among the group with a 15% market share – roughly 10.1 million units – placing it behind its local competitors.

So, one store opens, another is going to be shut down: but locals grab iPhones less and less. That doesn’t worry me a bit. The big question is: how can people outside of China grab a hold of Chinese phones? Brands often release top-shelf models only for the Chinese market, and that’s a shame.