VietNamNet Bridge - Just one year after the opening of the first shop and announcing a plan to open 1,400 points of sale, Microsoft Store has closed. 

In mid-June 2015, the first shop of Microsoft Store was opened by FPT and Microsoft at No 63 Ly Thuong Kiet street in the central business district of Hanoi.

As Microsoft’s official shop, Microsoft Store provides consumers with Microsoft’s products such as Lumia smartphones running on Windows Phone, feature phones, and Microsoft Office 365 software. There is also the space for displaying desktop computers and tablets of Microsoft’s partners.

At that time, Vinod Muralidharan, chief representative of Microsoft Mobile Vietnam, stated that Microsoft and its partners planned to open up to 1,400 shops.

However, just months later, FPT and Microsoft had to close the chain.

When asked about the closure of Microsoft Store, FPT said that in order to enhance operation efficiency, FPT has decided to change places to sell Microsoft’s products. 

In July 2016, the showroom of a luxury bathroom equipment supplier opened at No 63 Ly Thuong Kiet street, where Microsoft Store had opened.

Just one year after the opening of the first shop and announcing a plan to open 1,400 points of sale, Microsoft Store has closed.

Analysts say there are some 20 mobile phone models bearing Nokia – Microsoft brand being sold in the Vietnamese market, including feature and smart phones, through FPT Shop, Viettel Store, The Gioi Di Dong, Vien Thong A and Mai Nguyen distribution networks, and sold online through Lazada.

In 2014, after the takeover of Nokia’s smartphone manufacturing division wrapped up, Microsoft’s market share increased considerably. A report of GfK showed that in Vietnam, Microsoft ranked second to Samsung with 26.4 percent of market share, leaving other rivals far behind.

However, Microsoft’s market share dropped sharply to 15.5 percent in 2015.

In late 2015, Microsoft launched Lumia 950 and Lumia 950XL. Later, in January 2016, it marketed Lumia 650. However, the efforts could not help improve the situation for Microsoft’s smartphone. 

Market survey firms commented that Microsoft products have become less competitive than rivals. By May 2016, its market share had dropped to a disappointing 4.7 percent.

According to FPT, in late July, representatives of Microsoft Asia-Pacific had a meeting with FPT Trading about better cooperation to revive the Nokia brand in the Vietnamese market.

According to James Rutherford from Microsoft Asia Pacific, HMD Global plans to launch 2 feature phone models in the fourth quarter of 2016 and at least 2 smartphone models under the Nokia brand by the second quarter of 2017.

Buu Dien