Apple Closes a Store for the First Time in the Biggest Smartphone Market on Earth 

Published: Jul 29, 2025, 6:34 AM

In 2025, another surprising announcement: Apple, which has many stores in China, has decided to close one of its iconic locations in the country, which remains the largest smartphone market in the world. This decision marks a significant turning point for the tech giant, which has been present in China since 2008.

The store in question is located in Parkland Mall in Dalian, a city in northeastern China, and its closure is scheduled for August 9. The reasons cited for this decision are linked to a general decline in foot traffic within the shopping center, where other major brands, such as Michael Kors and Armani, have also exited. This trend reflects broader economic challenges facing China, with consumer spending remaining weak despite government efforts to stimulate expenditure through trade-in programs and subsidies for products like smartphones and electric vehicles.

Apple is experiencing increasing pressure in China, its second-largest market after the United States. Local competitors such as Huawei, Xiaomi, and Vivo continue to eat into its market share. In fact, Apple’s sales in China have been declining for six consecutive quarters, with revenue dropping nearly 10% last year compared to its peak in 2022.

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

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. This triumphant return of Huawei 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. Although Apple remains in the top five, it ranks last among this group with a 15% market share—approximately 10.1 million units—placing it behind its local competitors.

So, while one store closes, another opens: locals are buying fewer iPhones. This doesn’t worry me much. The big question remains: how can people outside of China get their hands on Chinese phones? Brands often release high-end models exclusively for the Chinese market, which is truly unfortunate for international consumers.