Microsoft has reportedly closed its stores in mainland China, however, customers will still be able to purchase products through partners and on the Microsoft online store.
He The South China Morning Post Microsoft says it will focus on channel sales, enhancing partnerships with third-party retailers and boosting its online presence.
The move marks a significant shift in the way Microsoft does business in the world's second-largest economy, and could signal a broader sales strategy that could be applied globally.
Microsoft closes Chinese stores
Although it is currently ranked as the most valuable company in the world, with a market capitalization of $3.413 trillion, Microsoft’s portfolio encompasses more than just hardware. Compared to Apple, which sits in Microsoft’s shadow with a market cap of $3.377 trillion, the company’s Surface hardware has not proven to be as popular.
Declining interest and poor profits from brick-and-mortar stores could also be partly to blame for Microsoft's decision to close the doors of all its Chinese stores.
He The South China Morning Post The report cites three unnamed retailers who say Microsoft stores have been given until June 30 to close. The stores, which operate as franchises, were previously exempt from the company’s 2020 decision to close more physical stores around the world. Key sites in London, New York, Sydney and its Redmond campus currently remain open.
In addition to closing its retail stores in China, Microsoft has also been relocating employees outside the country, offering them positions in the United States, Australia, New Zealand and Ireland.
Company president Brad Smith also revealed that China accounts for just 1.5% of Microsoft's total revenue at a recent congressional hearing, raising questions about its future in the country.
TechRadar Pro has asked Microsoft to confirm some details about the reports, but the company did not immediately respond.
