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.
TEXT SIZE - +
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

Video Pope Francis Hopes Dual Canonizations Will Reconcile Church

John the XXIII and John Paul II will be made saints in a ceremony at St. Peter’s Square on April 27 More

Thailand Reacts to Plots Targeting Israelis

Authorities hope arrest of two Lebanese suspects will disrupt plot to attack young Israeli tourists More

Video In Capturing Nature's Majesty, Film Makes Case for Its Survival

'Once Upon a Forest' takes viewers deep into heart of tropical rainforest More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Pope Francis Hopes Dual Canonizations Will Reconcile Churchi
|| 0:00:00
...
 
🔇
X
Jerome Socolovsky
April 22, 2014 4:14 PM
On April 27, two popes - John the XXIII and John Paul II - will be made saints in a ceremony at St. Peter’s Square. VOA religion correspondent Jerome Socolovsky says the dual canonization is part of the current pope’s program to reconcile liberals and conservatives in the Roman Catholic Church.
Video

Video Pope Francis Hopes Dual Canonizations Will Reconcile Church

On April 27, two popes - John the XXIII and John Paul II - will be made saints in a ceremony at St. Peter’s Square. VOA religion correspondent Jerome Socolovsky says the dual canonization is part of the current pope’s program to reconcile liberals and conservatives in the Roman Catholic Church.
Video

Video In Capturing Nature's Majesty, Film Makes Case for Its Survival

French filmmaker Luc Jacquet won worldwide acclaim for his 2005 Academy Award-winning documentary "March of the Penguins". Now Jacquet is back with a new film that takes movie-goers deep into the heart of a tropical rainforest - not only to celebrate its grandeur, but to make the case for its survival. VOA's Rosanne Skirble reports.
Video

Video Boston Marathon Bittersweet for Many Runners

Monday's running of the Boston Marathon was bittersweet for many of the 36,000 participants as they finished the run that was interrupted by a double bombing last year. Many gathered along the route paid respect to the four people killed as a result of two bombings near the finish line. VOA's Carolyn Presutti returned to Boston this year to follow two runners, forever changed because of the crimes.
Video

Video Pacific Rim Trade Deal Proves Elusive

With the U.S.-led war in Iraq ended and American military involvement in Afghanistan winding down, President Barack Obama has sought to pivot the country's foreign policy focus towards Asia. One aspect of that pivot is the negotiation of a free-trade agreement among 12 Pacific Rim nations. But as Obama leaves this week on a trip to four Asian countries he has found it very difficult to complete the trade pact. VOA's Ken Bredemeier has more from Washington.
Video

Video Robotic Mission Kicks Up Lunar Dust

A robotic mission to the moon was deliberately crashed onto the lunar surface late last week, but not before scientists had collected data gathered by the spacecraft which was designed to self-destruct. VOA's Rosanne Skirble reports on the preliminary findings of the craft, called LADEE - an acronym for Lunar Atmosphere and Dust Environment Explorer.
Video

Video Boko Haram Claims Responsibility for Bombing in Nigerian Capital

The Nigerian militant group known as Boko Haram has claimed responsibility for a bombing in the capital on April 14th that killed 75 people. In the video message, Abubakar Shekau, the man who says he ordered the bombing, says nothing about the mass abduction of more than 100 teenage girls, most of whom are still missing. Heather Murdock has more for VOA from Abuja.
Video

Video Ukraine Developments Hang Over Obama Trip to Asia

President Barack Obama's trip to Asia this week comes as concerns over Beijing's territorial ambitions are growing in the region. Those concerns have been compounded by Russia's recent actions in Ukraine and the possibility that Chinese strategists might be looking to Crimea as a model for its territorial disputes with its neighbors. VOA's Bill Ide has more from Beijing.
Video

Video Autistic Adults Face Housing, Job Challenges

Many parents of children with disabilities fear for the future of their adult child. It can be difficult to find services to help adults with disabilities - physical, mental or emotional - find work or live on their own. The mother of an autistic boy set up a foundation to advocate for the estimated 1.2 million American adults with autism, a developmental disorder that causes communication difficulties and often social difficulties. VOA's Faiza Elmasry reports.
AppleAndroid

World Currencies

EUR
USD
0.7217
JPY
USD
102.17
GBP
USD
0.5949
CAD
USD
1.1009
INR
USD
60.326

Rates may not be current.