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CEO apologises after Chinese media takes bite out of Apple

Shanghai: Apple chief executive Tim Cook took the unusual step this week of apologising to Chinese customers over the company's warranty policy and said he would improve customer service in the country.
By · 3 Apr 2013
By ·
3 Apr 2013
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Shanghai: Apple chief executive Tim Cook took the unusual step this week of apologising to Chinese customers over the company's warranty policy and said he would improve customer service in the country.

Apple's apology 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 criticised 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 $US90 ($86) 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 US.

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 for Industry and Commerce, which has oversight of business practices in China, called for "strengthened supervision" of the company.

And, in recent days, television evening news broadcasts have included images of Chinese journalists being turned away from Apple's offices in China.

Apple, based in California, issued a statement in Chinese to the media on Monday.

"We realise 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 apologise for any concern or misunderstanding."

Some media analysts and bloggers have called the media frenzy over Apple's warranty policies bizarre because of the ferocity of it. 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.
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Frequently Asked Questions about this Article…

Apple's apology followed a China Central Television (CCTV) investigative report broadcast on International Consumers' Day (March 15) that criticised Apple's after-sales iPhone service in China — noting Apple offered a one-year warranty while Chinese law requires two years and reporting customers paid about US$90 to replace faulty back covers. The media coverage and follow-up criticism prompted CEO Tim Cook to apologise and promise improvements to customer service.

State media, including CCTV and the official People's Daily, ran segments and editorials accusing Apple of poor after-sales service and not complying with consumer expectations in China. Coverage highlighted the shorter one-year warranty, repair charges, and framed the issue as evidence of perceived arrogance by the company, leading to sustained criticism in state-run outlets.

Tim Cook wrote an open letter in Chinese apologising for any concern or misunderstanding, saying a lack of communication had led people to believe Apple was arrogant or didn't value consumer feedback. He said Apple would improve customer service in China.

Following the CCTV report, several Chinese celebrities posted harsh comments on Weibo (China's Twitter-like service), and public discussion intensified. Evening television news even showed images of journalists being turned away from Apple's Chinese offices, reflecting broad public and media scrutiny.

Yes. China's State Administration for Industry and Commerce, which oversees business practices, called for "strengthened supervision" of Apple, indicating regulatory attention in addition to media pressure.

China is Apple's second-biggest market after the US, so sustained negative coverage, regulatory scrutiny or reputational damage could potentially affect sales, brand perception and operations there. Investors should view the incident as a reminder of political and regulatory risks when global companies operate in large, strategically important markets like China.

The article reports Apple issued a statement and Tim Cook apologised, saying the company would improve customer service. It does not state that Apple committed to changing its warranty period in China.

Investors should watch for follow-up announcements from Apple about customer service or warranty changes in China, any formal actions or rulings from Chinese regulators (like the State Administration for Industry and Commerce), ongoing media coverage in China, and China sales or earnings updates that could reflect the controversy's impact.