Apple has announced the closure of its Dalian store, the first directly operated outlet on the Chinese mainland to shut down, as the US tech giant grapples with slowing iPhone sales. The move coincides with Huawei Technologies regaining its lead in China’s smartphone market in the second quarter of 2025.
Apple to close Dalian store on 9 August
Apple’s store located in the Parkland shopping centre in Dalian, a city with a population of 7.5 million, will cease operations on 9 August, according to the company’s website. Once closed, only one Apple-owned store will remain in the city.
The decision comes after Parkland’s recent rebranding into Intime City following a change in the mall’s management company. Apple has not provided a specific reason for the closure and has yet to respond to media requests for comment.
As of last year, Apple operated 57 retail stores across Greater China, which includes mainland China, Hong Kong, Macau and Taiwan. Despite the upcoming closure in Dalian, Apple remains committed to its expansion plans in the region and is set to open its third store in Shenzhen on 16 August.
Huawei returns to the top in China’s smartphone market
In the same period, Chinese technology firm Huawei regained the top position in China’s smartphone market. According to data released by market research firm Canalys, Huawei captured 18 per cent of the domestic smartphone market between April and June, shipping 12.2 million units. This marked an increase from 10.6 million units in the same period last year.
The findings from Canalys align with data shared earlier by fellow consultancy IDC. The resurgence places Huawei ahead of all other brands in China’s increasingly competitive smartphone landscape.
Vivo, which led the market during the second quarter of 2024, fell to second place. The company shipped 11.8 million smartphones, securing a 17% market share. Oppo, based in Shenzhen, came in third with 10.7 million units and a 16 per cent share.
Xiaomi, headquartered in Beijing, held the fourth position. It shipped 10.4 million units, accounting for a 15 per cent market share and marking its eighth consecutive quarter of growth.
Apple ranked fifth in the market, with 10.1 million smartphones shipped during the second quarter. This gave the iPhone maker a similar market share of around 15 per cent.
Industry outlook remains cautiously optimistic
Despite the overall slowdown in smartphone sales, industry analysts remain hopeful about the market’s future performance. Amber Liu, practice leader at Canalys, attributed the recent dip to shifting seasonal demand patterns caused by a national subsidy programme introduced earlier in 2025.
“The [second quarter] correction is mainly a result of reshaped seasonality driven by the national subsidy programme in early 2025,” Liu said. “Despite the slowdown, underlying consumer demand remained resilient, with first-half shipments slightly increasing year on year.”
Liu also expressed confidence in China’s mobile market for the remainder of the year.
“Mainland China’s smartphone market is on track for modest full-year growth and is set to outperform the global market in 2025,” Liu added. “In the second half, consumer sentiment is expected to continue recovering amid signs of economic resilience.”
