Apple Inc. has announced plans to expand its retail presence in Shanghai, China with the unveiling of a new store in Jingan district later this month. This expansion comes as iPhone sales in China, one of Apple's key markets, have been experiencing a decline.
According to the company's website, the Jingan store will be the eighth Apple store opening in Shanghai, further solidifying the city as the location with the most Apple outlets in China. Prior to this, there are already 46 Apple stores spread across the country.
Bloomberg earlier reported that Apple has an ambitious retail strategy aiming to launch or renovate dozens of stores in the next few years, despite experiencing a decrease in sales. The company's first quarter report shows disappointing results in Greater China. The region's sales fell from $23.91 billion the previous year to $20.82 billion, while all other regions saw an increase.
Apple CFO Luca Maestri pointed out during the first-quarter earnings call that despite the slowdown, a Kantar survey shows that four of the six most popular smartphone models in urban China are iPhones.
On the other hand, research firm Counterpoint reported in early March that Apple's iPhone sales in China during the first six weeks of 2024 fell by 24% compared to the same period last year. The overall smartphone market in China also witnessed a decline of 7%.
Local Chinese smartphone makers pose as a tough competition for Apple. Most notably, Huawei experienced a significant sales increase of 64% in the same period where iPhone sales struggled.
