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Microsoft takes retail market fight into Asia

Software giant challenges rivals with plans for own branded stores in Hong Kong and on the mainland to engage directly with consumers

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Microsoft, the world's largest software company, plans to expand its network of branded retail stores into Hong Kong - which would be its first in Asia - and the mainland.

That initiative would put Microsoft in head-to-head competition against Apple, which has established some of its most lucrative branded retail shops at 11 locations in the two markets.

Ralph Haupter, the chairman and chief executive of Microsoft Greater China, said: "We really want to go to the next step, and start branding the end-to-end experience that users have with premium devices from OEMs and obviously, our own."

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Microsoft started last year its transition into a devices-and-services company, creating a budding new rivalry with Apple, Google and Amazon.

While strategic partner Nokia makes smartphones based on the Windows Phone 8 operating system, Microsoft has released its own line of media tablets. There are 15 original equipment manufacturers that run Windows 8 on their smart devices, including Lenovo, Dell, Acer and Asus.

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Microsoft has opened 78 branded retail stores in the United States, Canada and Puerto Rico. Apple, in contrast, has 406 branded stores worldwide.

"There should be no doubt that Hong Kong deserves a Microsoft store," Haupter said. "The mainland deserves to have a Microsoft store as well."

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