Apple will shut down its store in Parkland Mall, China. This Dalian City store will close on August 9. It’s the first time Apple is closing a store in China. The company is facing weak sales and strong local competition. Still, Apple plans to grow its retail network in other cities and countries.
Key Takeaways:
- Apple to close Parkland Mall store in China on Aug 9.
- Faces tough competition and weak demand in Chinese market.
- Still expanding globally with new stores and online focus.
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Apple Parkland Mall Store to Shut Down Soon
Apple confirmed it will close the Parkland Mall store in Dalian. The store is located in the Zhongshan District. This will be Apple’s first store closure in China. The reason is the mall’s low foot traffic and decline in big brands. Popular names like Coach and Hugo Boss also left the mall.
Apple says all employees from this store will get new roles. They will move to other Apple stores nearby. One store is just ten minutes away, inside Olympia 66 Mall. Apple said customers will not face service problems in Dalian. The company will continue support and sales through other locations.
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Why Apple is Facing Challenges in China
China’s economy is slowing down, which affects people’s spending. Many customers are buying fewer expensive phones. Apple’s sales in China fell by 2.3% in the second quarter. The company earned $16 billion, but it expected $16.8 billion. This shows a drop in demand.
In 2022, Apple earned $74.2 billion in China. That number dropped to $66.95 billion in 2023. Also, Apple’s market share fell from 17.9% to 15.5%. Local brands like Huawei and Vivo are growing fast. They offer cheaper phones with great features. So, Apple is losing customers to these local brands.
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Apple Still Growing in Other Markets
Even though one store is closing, Apple is opening others. A new store will launch in Shenzhen on August 16. It will be inside the Uniwalk Qianhai shopping center. Apple is also planning more stores in Beijing and Shanghai.
Apple’s expansion is not limited to China. New stores are coming in India, UAE, Saudi Arabia, and the USA. In January, Apple opened a new outlet in Miami. The company is also focused on online stores for new markets. It is now more careful while choosing retail locations. Apple also closed stores in the UK and Australia earlier.
Apple’s Parkland Mall store will close soon due to weak sales. Local phone brands and a slow economy are big reasons. But Apple is not stepping back from retail. It is opening new stores and growing online. While one door closes in China, many others are opening worldwide.
Written By: Vihan Singh
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