Tuesday 2 April 2013

Apple Apologises China

Apple apologises to Chinese customer for warranty policies.

Apple in China

After coming in news for two weeks and facing the threats of penalties from 2 Chinese government bureaus, Apple apologised Chinese consumer on Monday for poor communication and said that it will change its terms for some iPhones sold in China.

"The company's apology letter has eased the situation, softening the tense relationship between Apple and the Chinese market ... Its reaction is worth respect compared with other American companies," wrote the Global Times, published by Communist Party mouthpiece the People's Daily.

Apple was first targeted in mid-March by state broadcaster CCTV during its annual consumer day segment. Volkswagen AG , which was also criticised on the same show, plans to recall vehicles to fix a gearbox problem.

"That Timothy Cook had to step up and respond from the CEO's chair shows the importance of China and how critical it is as a market not just for Apple but for every multinational company here," said Kent Kedl, Shanghai-based head of Greater China and North Asia for risk consultancy firm Control Risks.

Foreign companies who are adept at managing media crises at home find it much tougher to navigate China where state media outlets, pandering to different audiences, often have opaque agendas and intentions. Analysts also said that foreign companies need to remember that the bigger the brand, the bigger a target it will be, especially in China.

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