Amazon.com, Inc. (NASDAQ:AMZN) has announced the closure of its Kindle digital bookstore in China and ended sales of its Kindle devices in Chinese retail stores.
What Happened: The Wall Street Journal reported that China-based sales of titles on the Kindle eBook shop will cease on June 30. Customers will not be able to download eBooks that they’ve already purchased and Amazon plans to give refunds to Chinese consumers who purchased a Kindle this year.
Kindle accounted for 65% of China’s e-reader market, far ahead of Xiaomi Corp.’s (OTC:XIACY) Duokan and iReader Technology Co.’s device, which each hold 10% of the market.
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Why It Happened: Amazon did not publicly explain its decision to shut down its Kindle presence in China, but it insisted it was not abandoning the country.
“Amazon China’s long-term commitment to customers will not change,” Amazon said in a post on its WeChat social media page. “We have established a broad business base in China and will continue to innovate and invest.”
The company added it would continue China-based operations for Amazon Global Store, its international e-commerce business, and would continue to pursue advertising, logistics and cloud business within China.
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