China: Apple closes first flagship store amid falling smartphone market share

The American technology corporation Apple announced the closure of its first flagship store in the Chinese city of Dalian. The store, which opened in October 2015, will stop operating on August 9, 2025. It was the company's first official retail facility in Dalian and its second in northeastern Liaoning Province. The decision was made against the backdrop of increasing competition and changes in the structure of consumption in the key Chinese market for Apple.

The company did not provide official comments on the reasons for the closure, but the move coincided with the publication of financial results for the second quarter of fiscal year 2025. Despite an increase in total quarterly revenue to $ 95.36 billion, up 5 percent from the same period last year, revenue in mainland China declined 2 percent to $ 16 billion.

Analysis of the market situation indicates significant changes in the balance of power in the smartphone market in China. According to open data, Huawei took a leading position in the second quarter of 2025, shipping 12.5 million devices and securing 18.1 percent of the market share. Apple, on the other hand, dropped to fifth place with a share of 13.9 percent, behind not only Huawei, but also such Chinese manufacturers as Vivo, OPPO and Xiaomi. This drop comes just six months after Apple held the top spot in the market with a 17.4 percent share in the fourth quarter of 2024.

The shift in leadership in the world's largest smartphone market reflects the growing importance of local brands that adapt to changing consumer preferences and offer devices with a more competitive price-performance ratio. Additional pressure is exerted by restrictions on the export of key technologies, as well as active support for national production by the Chinese authorities.

It remains unclear whether the closure of the store in Dalian indicates a temporary adjustment of Apple's retail strategy or the beginning of a large-scale transformation of the company's presence in the Chinese market. At the moment, Apple continues to invest in the ecosystem of services and the development of new devices, but competition in China is increasing, and the brand's sustainability in this market will largely depend on its ability to adapt to a changing market environment.