Apple's decision to close a store in China and increase manufacturing in India indicates a significant shift in the company's strategy. India is now becoming not just a manufacturing site for Apple, but a robust global supply hub.
Apple: Tech giant Apple has announced a major change in its global strategy by closing its first retail store in China. On the other hand, it is focusing on establishing India as its new manufacturing and export hub. The Apple store located in Dalian's prestigious Parkland Mall will close permanently on August 9th. This move not only points towards China's slowing economy, but also tells the story of India's growing tech-empowerment.
Apple's Retail Store Closing in China
Apple has announced that the Apple Retail Store located in Parkland Mall in the Zhongshan area of Dalian, China, will be permanently closed on August 9, 2025. This was Apple's first store in China, and it is now closing. Apple says that the shopping complex is undergoing constant changes and major international brands such as Coach, Sandro, and Hugo Boss have already left this mall. Operating a store in this environment has become challenging.
What did Apple say?
Apple has issued a statement saying that it is committed to providing the best experience to its customers. The company has 56 stores in China, which account for 10% of its global retail operations. In addition to the Parkland Mall store in Dalian, another store is located in the Olympia 66 Mall, which will continue to operate as before. Employees of the Parkland store will be shifted to other stores.
India is Becoming the New iPhone Manufacturing Hub
While Apple is being forced to close stores in China due to the slowdown and market instability, India has made tremendous strides in iPhone manufacturing. India has now become the largest supplier of iPhones to the United States. According to a new report by Canalys, in the second quarter of 2025, India's share of smartphones exported to the US was 44%, up from just 13% last year. That's more than a three-fold increase in one year!
Apple's Make in India Strategy
Apple is now also manufacturing the Pro models of the iPhone 16 series in India under the 'Make in India' initiative, which are being directly exported to the United States. Apple's manufacturing partner companies – Foxconn, Pegatron, and Tata Electronics – are running iPhone production units in various states of the country. Foxconn recently expanded its plants in Telangana and Tamil Nadu. Tata Group is also setting up a new production unit in Karnataka in collaboration with Apple.
Why is India Becoming a Better Option Compared to China?
India is now being seen as a b alternative not only due to its cheap labor but also due to political stability, the government's production-oriented PLI (Production Linked Incentive) scheme, and technology infrastructure. On the other hand, American tech companies in China are constantly facing censorship, data regulations, and geopolitical tensions. Due to this, companies like Apple are being forced to diversify their operations.
iPhone Sales are Also Increasing in India
Not only manufacturing, but iPhone sales are also increasing rapidly in India. Apple opened two major stores in India last year – in Mumbai (BKC) and Delhi (Saket) – which received tremendous response from customers. The increase in income of the middle class in India, the convenience of EMI and trade-in options have made Apple products more accessible than before.
Will Apple completely withdraw from China in the future?
Apple is not completely withdrawing from China yet, but the signs are clear that the company no longer wants to keep all its eggs in one basket. This is a big step towards supply chain diversification. Countries like India, Vietnam and Indonesia are now becoming its primary alternatives.
