Wednesday, April 3, 2013

Opinions Differ Widely On The Effectiveness of Apple's Apology In China

People queue up to buy the new iPad during its China launch at the Apple store in ShanghaiTim Cook’s apology to Apple’s Chinese customers has divided observers, some of whom claim that the public mea culpa might undermine the Cupertino company by giving credence to government criticism. Cook’s letter was posted (link via Google Translate)?on the Chinese Apple Web site on Monday after two weeks?of heated attacks by China’s state-run media. Cook focused on Apple’s communication over its warranty and said the company would change its repair policy for iPhone 4 and iPhone 4S devices sold in China. “We realize a lack of communication in this process has led to speculation that Apple is arrogant and doesn’t care about or value consumers’ feedback,” wrote Cook. “We sincerely apologize for any concern or misunderstanding this has brought to customers. The wording of Cook’s apology made it seem like a direct response to an article published by People’s Daily, the Chinese government’s official newspaper, that called the company “arrogant,” as well as a China Central Television’s investigative program that claimed Apple’s warranty practices discriminates against Chinese iPhone owners. (Other recent attacks by state-run media agencies included a report by official government press agency Xinhua, which blamed Apple for an increase in high-interest loans taken out by students to buy ?fancy electronic products.?) At stake is Apple’s second-biggest and fastest-growing market: “Greater China” (the term used to describe the market including China, Hong Kong and Taiwan) accounted for 13 percent of Apple’s sales last year. Cook’s apology earned the Cupertino company pats on the head by the state media and government officials.?The Global Times, published by the People’s Daily, wrote, “the company’s apology letter has eased the situation, softening the tense relationship between Apple and the Chinese market.”?Foreign Ministry spokesman Hong Lei also told the press during a daily news briefing that “we approve of what Apple said.” Despite the onslaught of highly critical articles, many Chinese netizens seemed dubious about the charges against Apple.?In fact, the company may have undermined its positive image among consumers by issuing an apology, Shaun Rein, managing director and founder of China Market Research Group, told Bloomberg. “After the criticism started taking place, my firm went out and interviewed about 30 Chinese consumers. The vast majority of them said ‘why is the media attacking Apple? Apple is known for great service,’” Rein said. “The consumers are saying the media should be attacking, say the pigs in the river, which is really disgusting.” “The problem

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