Microsoft closes all physical shops in mainland China

Date:
Wed, 03 Jul 2024 13:14:13 +0000

Description:
Microsoft will sell its products online and through partners in China,
closing all of its physical franchise stores.

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Microsoft has reportedly shut down its stores across mainland China, however customers will still be able to buy products through partners and on the Microsoft online store.

The South China Morning Post claims Microsoft will focus on sales through channels, 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 worlds second-largest economy, potentially hinting at a broader sales
strategy that could be applied globally. Microsoft closing Chinese stores

Though it is currently ranked as the worlds most valuable company, with a market cap of $3.413 trillion, Microsofts portfolio spans more than just hardware. Compared with Apple, which sits in Microsofts shadow with a market cap of $3.377 trillion, the company's Surface hardware hasnt proven quite as popular.

Declining interest and poor profits from physical stores could also be partly to blame for Microsofts decision to shut the doors to all of its Chinese stores.

The South China Morning Post cites three unnamed distributors stating that Microsofts stores were given until June 30 to close. Operating as franchise businesses, the stores were previously exempt from the companys 2020 decision to close more physical stores worldwide. Key sites in London, New York City, Sydney and at its Redmond Campus currently remain open.

In addition to closing its retail stores in China, Microsoft has also been relocating employees from the country, offering them positions in the US, Australia, New Zealand and Ireland.

Company President Brad Smith also revealed that China accounts for only 1.5% of Microsofts 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. More from TechRadar Pro Weve rounded up a list of the best Windows laptops around today Check out the best business laptops and best mobile workstations Microsoft says Chinese government groups are still looking to disrupt US society



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Link to news story: https://www.techradar.com/pro/microsoft-closes-all-physical-shops-in-mainland- china


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