Ahead of iPhone 17 launch, Apple is set to close its Parkland Mall retail outlet in Dalian on August 9, marking the company’s first-ever physical store shutdown in mainland China since entering the region almost 20 years ago. The decision comes in response to “operational adjustments” at the mall, which has recently undergone rebranding and is now managed under the name Intime City.
Apple will be closing its Parkland Mall store in Dalian:
Apple will be closing its Parkland Mall store in Dalian, one of the two locations in the city, following the departure of several major tenants from the shopping center. However, the company confirmed that its nearby Olympia 66 store will continue operations. Employees impacted by the closure will be offered positions at other Apple locations within Greater China, where the tech giant runs a total of 56 stores. Worldwide, Apple currently operates more than 530 retail outlets.
Apple’s revenue from Greater China dropped:
In the previous year, Apple’s revenue from Greater China dropped to $66.95 billion. While that number might seem impressive—surpassing the total annual revenue of companies like Coca-Cola or Nike by roughly $20 billion—it’s a cause for concern at Apple. The figure represents an 8% decline compared to the year prior and nearly a 10% decrease from its 2022 peak, likely prompting unease among company executives.
Chinese market poses distinct hurdles for Apple:
Despite Apple’s solid performance worldwide, the Chinese market poses distinct hurdles. With consumers becoming more budget-sensitive and domestic brands delivering compelling alternatives at lower prices, Apple has been forced to adjust its retail approach. The company is now concentrating on prominent, high-footfall flagship stores while also investing in expanding and enhancing its digital services ecosystem.
China is grappling with deflationary trends as consumer spending weakens and international tariffs weigh on export performance. Retail sales have grown at a slower pace than expected, while property values are falling more rapidly than projected.
