SHANGHAI — Apple’s chief executive, Timothy D. Cook,
took the unusual step Monday of apologizing to Chinese customers over
the company’s warranty policy and said he would improve customer service
in the country.
Apple’s apology Monday was the latest twist in a strange spectacle that has unfolded in recent weeks in China
over Apple’s warranty policies and underscored the challenges the
company is facing as the country becomes an important market for its
products.
Apple’s problem began on International Consumers’ Day, when China’s
biggest state-run television network, as is its tradition, broadcast an
investigative report on how companies operating in China cheat or
mistreat consumers. This year, on March 15, one of the targets was
Apple.
China Central Television criticized the American company’s after-sales
iPhone customer service in China because it gave only a one-year
warranty, while in China the law is two years. It also said that phone
owners had to pay about $90 to replace a faulty back cover.
Apple did not immediately respond to some of the accusations, but other
state media outlets stepped up their criticism over the next two weeks,
raising the stakes for Apple in China, which is now the company’s
second-biggest market after the United States. Soon after the segment
was broadcast, several Chinese celebrities piled on, posting harsh
comments on Weibo, China’s Twitter-like service.
Then People’s Daily, the official mouthpiece of the Communist Party,
published a series of editorials and articles, including one paper
titled “Defeat Apple’s Incomparable Arrogance.”
Other state organs also joined the fray. China’s State Administration of
Industry and Commerce, which has oversight of business practices in
China, called for “strengthened supervision” of Apple.
And in recent days, television news broadcasts have included images of
Chinese journalists being turned away from Apple’s offices in China.
Apple, based in Cupertino, Calif., issued a statement in Chinese Monday.
“We realize that a lack of communication in this process has led the
outside to believe that Apple is arrogant and doesn’t care or value
consumers’ feedback,” Mr. Cook wrote in the open letter. “We sincerely
apologize for any concern or misunderstanding this has brought to the
customers.”
Some media analysts and bloggers have called the media frenzy over
Apple’s warranty policies bizarre because of the ferocity of it.
Several online bloggers, for instance, noted that Chinese celebrities
who posted online shortly after the television broadcast on March 15
seemed not to be doing so spontaneously, but at the urging of the state
broadcaster. The suspicions arose after one celebrity’s post ended with
the line: “to publish around 8:20 p.m.”
Other analysts speculate that the continuing media blitz against Apple
is aimed at showing what the government can do to American technology
giants, even those as successful as Apple.
The criticism of Apple coincides with the Obama administration’s
pressure on Beijing on cybersecurity issues. A growing number of
American companies have complained about computer hacking attacks that
seemed to be originating in China.
And earlier this year, several members of Congress moved to restrict two
of China’s biggest telecommunications equipment makers, Huawei and ZTE,
from doing business in the United States because of concerns that they
could engage in espionage.
Sprint Nextel and SoftBank, its Japanese suitor, are expected to enter
an agreement with American law enforcement officials to allay such
national security concerns. It will restrict the combined company’s
ability to pick suppliers for its telecom equipment and systems, like
Huawei and ZTE.
Bill Bishop, a Beijing technology analyst and publisher of the online
newsletter Sinocism China, said it was difficult to know what prompted
the investigation by the state media, but he noted that Apple’s
explosive growth in China might have outpaced the company’s ability to
fully train and prepare its work force and management team to deal with
the challenges of the Chinese market.
“Whatever the merits of the case, Apple’s not going to win here,” Mr.
Bishop said in an interview Monday. “Apple can’t fight this.”
Anna Han, an associate professor of law at Santa Clara University, said
Mr. Cook’s letter of apology was a smart tactic and a “very Chinese
thing to do.” She compared it with public apologies that plaintiffs will
sometimes ask for from defendants in Chinese courts. That action,
combined with the change in its warranty policy, “sort of takes the wind
out of the government’s sails,” said Ms. Han, who advises American
companies doing business in China.
“It says, ‘We’re accused of something and we’re doing something about it.’ ”
Ms. Han said it was possible that the Chinese state media were taking an
aggressive approach toward Apple in part to help Chinese companies that
could compete more closely with Apple over time, like ZTE. While past
attacks on Western companies have been related to food and drug safety
issues, she said the Apple warranty issues were relatively minor,
suggesting they were motivated by a form of protectionism.
Apple has been riding a wave of popularity in China with revenue
reaching $20 billion during the last year. In its most recently reported
quarter, sales in China were about 13 percent of the company’s total
sales, up from 9 percent a year earlier.
Apple has occasionally apologized or made policy changes when
controversies in the United States over its products have erupted, even
in cases where the company felt the issues were blown out of proportion.
In 2010, Apple agreed to give iPhone customers a free bumper for their
devices after some found that holding their iPhones directly weakened
its wireless signal. Last year, Mr. Cook published a letter of apology
to Apple customers after the company released an online maps service
that contained incorrect addresses, distorted aerial imagery and other
problems.
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