July 3rd, 2024

Microsoft closes all physical shops in mainland China

Microsoft has closed all physical stores in mainland China, focusing on online sales and partnerships due to declining interest and poor profits. The move reflects a broader shift in sales strategy.

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Microsoft closes all physical shops in mainland China

Microsoft has closed all its physical stores in mainland China, shifting its focus to online sales and partnerships with third-party retailers. The move is seen as a significant change in Microsoft's business strategy in China, the world's second-largest economy. The decision to close the stores comes amidst declining interest and poor profits from physical retail locations. Microsoft's Surface hardware, in particular, has not been as popular as expected. The company is now emphasizing online sales channels and partnerships to reach customers in China. Despite being the world's most valuable company, Microsoft's decision to close its Chinese stores reflects a broader shift in its sales approach. The closure of the stores in China follows a trend of relocating employees from the country to other regions like the US, Australia, New Zealand, and Ireland. Microsoft's move to close its physical stores in China raises questions about its future business operations in the country, where it currently generates only 1.5% of its total revenue.

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Link Icon 4 comments
By @throwaway4good - 5 months
"Company President Brad Smith also revealed that China accounts for only 1.5% of Microsoft’s total revenue at a recent congressional hearing, raising questions about its future in the country."

1.5% sounds like a number massaged to please the particular audience.

By @bediger4000 - 5 months
However will Chinese businesses function without access to the Standard Business Operating System?
By @hulitu - 5 months
Microsoft has "physical shops" ? This is news to me.