THE NEW YORK TIMES: Apple is shutting a store in China, its first closure in the country

Apple will close a store in northeastern China in August, the first time it has shuttered one of its retail locations since it opened its first outlet in the country in 2008.

The company said Monday that it would close its store in Dalian City’s Parkland Mall on August 9. On social media, locals have described the mall as struggling, noting that other brands like Michael Kors and Armani had closed their stores there.

“Given the departure of several retailers at the Parkland Mall, we have made the decision to close our store,” said Brian Bumbery, an Apple spokesperson. “We love serving the Dalian community, and all of our valued team members will have the opportunity to continue their roles with Apple.”

The closure is the latest sign of how China’s economy continues to be challenged by tepid consumer spending. The government has poured large sums into programs designed to spur purchases of smartphones, washing machines and electric vehicles. The trade-in programs have gotten people to spend more but economists say the impact on consumption could be short-lived.

The pullback also reflects Apple’s ongoing business troubles in China, which is its second-largest market. Apple has reported declining sales in China for six quarters. Last year, it reported total revenue in the country of $66.95 billion, nearly 10 per cent less than its peak of $74.2 billion in 2022.

Chinese rivals like Huawei, Xiaomi and Vivo have eroded Apple’s share of the world’s largest smartphone market. Last year, Apple’s share of sales of smartphones in China fell to 15.5 per cent from 17.9 per cent a year earlier, according to Counterpoint Research, a tech research firm.

Apple will continue to operate its other store in Dalian at another shopping mall, Olympia 66. The iPhone maker plans to open a new store in the southern Chinese city of Shenzhen this month. With that opening, the company expects to finish 2025 with the same number of stores, 58, as it had at the beginning of the year, even after the Parkland Mall closure.

This article originally appeared in The New York Times.

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