News / Economy

Apple CEO Apologizes to Chinese Consumers, Revamps Service

FILE - People walk past the Apple logo near an Apple Store at a shopping area in central Beijing, February 19, 2013.
FILE - People walk past the Apple logo near an Apple Store at a shopping area in central Beijing, February 19, 2013.
Reuters
Apple Inc. Chief Executive Tim Cook apologized to Chinese consumers on Monday and altered iPhone warranty policies in its number two market after more than two weeks of condemnation of its after-sales service in the state-run media.

From China Central Television to the People's Daily newspaper, government-controlled media outlets bashed the world's largest technology corporation for its "arrogance," protesting among other things that its current one-year service warranty was far shorter than in other smaller markets.

Apple, which initially dismissed those criticisms, on Monday promised to overhaul its consumer practices. Cook has previously said the world's second-largest economy is a crucial market for the iPad-maker.

FILE - Apple CEO Tim Cook speaks during an Apple event in San Francisco, Sept. 12, 2012.FILE - Apple CEO Tim Cook speaks during an Apple event in San Francisco, Sept. 12, 2012.
x
FILE - Apple CEO Tim Cook speaks during an Apple event in San Francisco, Sept. 12, 2012.
FILE - Apple CEO Tim Cook speaks during an Apple event in San Francisco, Sept. 12, 2012.
"We are aware that owing to insufficient external communication, some consider Apple's attitude to be arrogant, inattentive or indifferent to consumer feedback," Cook said in a letter written in Chinese on the company's local website. "We express our sincere apologies for causing consumers any misgivings or misunderstanding."

Cook's apology, unusual though not as rare as during his predecessor Steve Jobs' tenure, highlights the importance of the market for Apple.

The country is typically the brightest spot in Apple's quarterly financial statements. Revenue from greater China - which includes Taiwan and Hong Kong - totalled $7.3 billion in its fiscal first quarter, up 60 percent from a year ago.

Apple will begin detailing quarterly sales results from the region starting this month.

'Much to Learn'

Cook also said in the lengthy letter that Apple has "much to learn about operating and communicating in China."

China has long been a prime market for Western corporations hoping to capitalize on its growing economic power and increasingly affluent middle-class. Still, companies face many pitfalls operating in the country.

A customer show his new iPhone 4S after making the purchase at Apple's retail store in downtown Shanghai, January 13, 2012.A customer show his new iPhone 4S after making the purchase at Apple's retail store in downtown Shanghai, January 13, 2012.
x
A customer show his new iPhone 4S after making the purchase at Apple's retail store in downtown Shanghai, January 13, 2012.
A customer show his new iPhone 4S after making the purchase at Apple's retail store in downtown Shanghai, January 13, 2012.
Since it joined the World Trade Organization and opened up its markets, many have run afoul of perplexing and sometimes arbitrary local regulations, notoriously fickle consumer sentiment - and occasionally capricious media coverage. Regardless, many corporations view the country as prime expansion territory as growth slows in the developed world.

Apple is hardly the first Western brand-name to come under fire in the media for a variety of real or perceived missteps, or the first to alter its policies.

KFC parent Yum Inc issued a mea culpa in January for its handling of reports that chicken from some of its suppliers contained excess amounts of drugs and hormones. It subsequently outlined how it would improve food safety and quality control.

In the case of Apple, its iPhones, iPods and computers are considered aspirational products in China with cache among the countries growing middle class.

Successful foreign brands like Wal-Mart Stores and Gucci have also come under fire for various product and labor issues.

Criticism of Apple began on March 15 with the broadcast of an annual show on CCTV about consumer safety and rights, which has become an annual ritual targeting foreign, along with Chinese consumer firms.

The program assailed Apple for its after-sales service, including Apple's failure to offer new replacement iPhones with a one-year warranty in the case of major repairs.

Now, Apple will offer full replacements of iPhone 4 and 4S instead of major repairs, adding a one-year warranty starting from the date of replacement.

It will provide simpler and clearer explanations of warranties on its website and allow customers to offer feedback directly, Cook said. The company will also provide refresher training to service providers to explain the new warranty policy, he added.

The iPhone 5, the latest model, already carries a similar warranty to the new iPhone 4 and 4S coverage.

CCTV's show this year became the subject of online ridicule over claims the network paid celebrities to post micro-blog comments against Apple. Thousands of Chinese have come to its defense online, criticizing Chinese firms as being the ones that lack transparency and consumer trust.

You May Like

Captured IS Militants Explain Why They Fought

Fighters from Turkey, Syria tell VOA Kurdish Service what drew them to extremism, jihad More

Security Experts Split on Kenyan Barrier Wall

Experts divided on whether initiative aiming to keep out al-Shabab militants is long-awaited solution or misguided effort More

Video Philippines Wants Tourists Spending Money at New Casinos

Officials say they hope to turn Manila into the next Macau, which has long been Asia’s gambling hub More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Liberia's Almost Last Ebola Patient Grateful but Still Grievingi
X
Benno Muchler
March 26, 2015 3:41 PM
Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Cambodian Land Grabs Threaten Traditional Communities

Indigenous communities in Cambodia's Ratanakiri province say the government’s economic land concession policy is taking away their land and traditional way of life, making many fear that their identity will soon be lost. Local authorities, though, have denied this is the case. VOA's Say Mony went to investigate and filed this report, narrated by Colin Lovett.
Video

Video US, South Korea Conduct Joint Military Exercises

The Eighth U.S. Army Division and the Eighth Republic of Korea Mechanized Infantry Division put on a well orchestrated show of force for the media this week during their joint military training exercises in South Korea. VOA’s Seoul correspondent Brian Padden was there and reports the soldiers were well disciplined both in conducting a complex live fire exercise and in staying on message with the press.
Video

Video Space Program Status Disappoints 'Last Man on the Moon'

One of the films that drew big crowds last week at the annual South by Southwest festival in Austin, Texas, tells the story of the last human being to stand on the moon, U.S. astronaut Eugene Cernan. It has been 42 years since Cernan returned from the moon and he laments that no one else has gone there since. VOA’s Greg Flakus reports.
Video

Video Young Filmmakers Shine Spotlight on Giving Back

A group of student filmmakers from across the United States joined President Barack Obama at the White House this month for the second annual White House Student Film Festival. Fifteen short films were officially selected from more than 1,500 entries by students aged 6 through 18. The filmmakers and their families then joined the president and a group of celebrities for a screening of their films. VOA’s Julie Taboh reports.
Video

Video VOA Exclusive: Interview with Afghan President Ashraf Ghani

Afghan President Ashraf Ghani, during his first visit as president to Washington, gave a one-on-one interview with VOA Afghan Service reporter Said Suleiman Ashna, about his request for a change in U.S. troop levels, the threat from the Islamic State, and repairing relations with the United States and Pakistan. The interview was held at Blair House, late Sunday, in Pashto.
Video

Video California Science Center Tells Story of Dead Sea Scrolls

The ancient manuscripts were uncovered in the mid-20th century, and they are still yielding clues about life and religious beliefs in ancient Israel. As VOA's Mike O'Sullivan reports, an exhibit in Los Angeles shows how modern science is bringing the history of these ancient documents to life.
Video

Video Angelina Jolie Takes Another Bold Step

Hollywood actress and filmmaker Angelina Jolie has revealed she had her ovaries and fallopian tubes removed to lower her odds of getting cancer. Doctors say the huge publicity over her decision will help raise awareness about the importance of cancer screening. VOA’s George Putic has more

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.9103
JPY
USD
119.37
GBP
USD
0.6704
CAD
USD
1.2481
INR
USD
62.371

Rates may not be current.