The new location in Shanghai, Apple Jing'an, will be the tech giant's 47th in the country
Apple $AAPL is preparing to open a new store in Shanghai later this month, expanding its retail network after iPhone sales in China suffered a setback. The new store, Apple Jing’an, is expected to open on March 21 in Shanghai, accompanied by a live performance of the Shanghai Symphony Orchestra, according to a notice posted on the company’s website.
It will be Apple’s eighth store in Shanghai and 47th across China. Shanghai already hosts the largest number of Apple stores per city in the country’s mainland. Beijing, China’s capital city, has five.
The Cupertino, California-based company’s push for growth in China comes after sales plummeted following the release of the iPhone 15, Apple’s expensive smartphone that came out in September 2023. Apple’s iPhone sales sunk 24% in China over the first six weeks of 2024, weakened by stiff competition from local rivals, according to Counterpoint Research.
On Jan. 15, Apple began offering discounts on its iPhones in China, cutting prices by as much as 500 yuan ($70). The promotion, branded as a Lunar New Year event, was the first time Apple has slashed prices for its latest model iPhones in years, Reuters reports.
“Primarily, it faced stiff competition at the high end from a resurgent Huawei while getting squeezed in the middle on aggressive pricing from the likes of OPPO, vivo and Xiaomi,” Mengmeng Zhang, Counterpoint’s senior analyst, said in a statement. Zhang added that the iPhone 15 doesn’t have a “significant” leg up on older models, so consumers aren’t rushing to upgrade.
The new store in Shanghai is also part of Apple’s push to expand and revitalize its operations in the Asia-Pacific region, including 15 new stores and six revamped or relocated stores. The technology giant has more than 520 stores across 26 countries.
As Apple moves to shore up its retail sales in Asia, it’s facing increased pressures in Europe and the U.S.
Over the past few weeks, Apple has shut down its expensive electric vehicle project, been slapped by European regulators with a $2 billion fine, and got snubbed by Goldman Sachs $GS. Plus, Apple stock could be “slaughtered” if Warren Buffett’s Berkshire Hathaway $BRK.B further trims its stake, according to a Mizuho analyst.
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