Microsoft will not offer its Surface business to a Chinese vendor for $1.2 billion, the company said Thursday.
Microsoft said it had agreed to a price with Lenovo on its Surface laptops for the first time since the 2016 acquisition of the device maker in 2013.
Lenovo, which makes the Surface Pro and the Surface Book tablets, declined to comment.
Lenio is the only major vendor that makes its own laptop processors and other components.
Microsoft, which has sold its Surface Pro laptop and Surface Pro tablet brands to Lenovo, is also expected to offer its own Surface laptop to Chinese smartphone maker Xiaomi.
Microsoft has struggled to sell its Windows 10 Mobile operating system and Surface Laptop products to customers in China.