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Apple is opening a new store in Wenzhou, China, this Saturday. The launch of the store comes at a difficult time for the company, which is currently facing huge challenges in the market, especially when it comes to its low iPhone demand among Chinese customers.
The store will be the company’s fourth in China’s Zhejiang province, and it will be offering a variety of Apple products, including the iPhone 15 series.
“We’re excited to be expanding to reach even more customers with the opening of Apple MixC Wenzhou, and we’re proud of the deep, long-lasting connections we’ve built with communities in China,” said Deirdre O’Brien, Apple’s senior vice president of Retail. “Our team members can’t wait to welcome the local community to our newest location and help even more customers discover the magic of Apple, including the new iPhone 15 lineup and new Mac models featuring the M3 family of chips.”
With 100 team members designed for the location, the new store is expected to help Apple make more sales in China, which is one of its biggest markets. Unfortunately, iPhones, Apple’s biggest source of revenue by product, are believed to be experiencing demand issues in the Chinese market. During its first 17 days, the iPhone 15 series even saw low sales and demand. Different e-commerce platforms seemingly affirmed this by making huge price slashes on their iPhone deals.
According to analysts, one of the biggest reasons causing the problem is the resurgence of Huawei’s influence in the Chinese market, thanks to its new Mate 60 series. Jefferies analyst Edison Lee noted earlier that Huawei outsold Apple through its Mate 60 Pro model, while the firm’s analyst suggested that Apple would lose to Huawei next year. Several Chinese customers have supported the idea recently, providing numerous reasons why Chinese smartphone brands are preferable over the “inferior” iPhone.
Aside from those challenges, Apple’s business is being threatened by the growing tension between the US and the Chinese government, with the latter ordering the iPhone ban among its government officials. In response, the Cupertino giant is trying to move some of its iPhone manufacturing deals away from China. However, a recent report stressed that it wouldn’t be easy for the company, given the manufacturing and assembling prowess of the general Chinese workforce.
Despite all the issues mentioned above, Apple CEO Tim Cook dismissed the idea about the iPhone’s situation in China. During the company’s fiscal year 2023 Q4 earnings results report, Cook said some of its smartphone models are the best sellers in China and that the latest iPhone 15 series has been performing better than its predecessor.
The opening of the new Apple MixC Wenzhou store should affirm Apple’s confidence in its business in China. However, future sales reports focusing on this huge Asian market will confirm whether Apple’s business is really prospering in China.
