Tag Archives: People Daily

Apple Apoligizes in China Following Criticism by State Media

By The Associated Press

Filed under: , , , ,

Eugene Hoshiko/AP

By CHRISTOPHER BODEEN

BEIJING — Apple apologized to Chinese consumers after government media attacked its repair policies for two weeks in a campaign that reeked of economic nationalism.

A statement Apple posted in Chinese on its website Monday said the complaints had prompted “deep reflection” and persuaded the company of the need to revamp its repair policies, boost communication with Chinese consumers and strengthen oversight of authorized resellers.

State broadcaster CCTV and the ruling Communist Party‘s flagship newspaper, People’s Daily, had led the charge against the U.S. company. They accused Apple Inc. (AAPL) of arrogance, greed and “throwing its weight around” and portrayed it as just the latest Western company to exploit the Chinese consumer.

The attacks quickly backfired, though, and were mocked by the increasingly sophisticated Chinese consumers who revere Apple and its products. State-run media also inadvertently revived complaints about shoddy service by Chinese companies.

Nonetheless, Apple responded with an apology from CEO Tim Cook.

“We’ve come to understand through this process that because of our poor communication, some have come to feel that Apple’s attitude is arrogant and that we don’t care about or value feedback from the consumer,” Cook’s Chinese statement said, as translated by The Associated Press. “For the concerns and misunderstandings passed on to the consumer, we express our sincere apologies.”

Although Apple enjoys strong support from Chinese consumers, the vehemence of the attacks and the importance of the Chinese market appeared to have persuaded the company to appear contrite.

The People’s Daily newspaper ran an editorial last Wednesday headlined “Strike down Apple’s incomparable arrogance.”

“Here we have the Western person’s sense of superiority making mischief,” the newspaper wrote. “If there’s no risk in offending the Chinese consumer, and it also makes for lower overheads, then why not?”

Chinese observers accused People’s Daily of gross hypocrisy and pointed out that the newspaper had maintained a stony silence when Chinese companies were implicated over food safety, pollution and other scandals. Meanwhile, CCTV was shamed when it emerged that celebrities had been recruited to blast Apple on Weibo, China‘s version of Twitter, in what had been billed as a grassroots campaign.

“The public responded in two ways to this incident,” popular commentator Shi Shusi wrote on his Weibo account. “One group supports this criticism but quite a number of people felt that there are state monopolies which have severely violated customer’s rights, but which are not being exposed.”

Poor Customer Service

Popular business magazine Caijing said its readers identified a long list of abusers, including state banks that lend to those with political connections while stiffing ordinary savers with low rates on deposits; a government oil company that sets gas prices and other rates as it sees fit; and state telecom providers notorious for …read more
Source: FULL ARTICLE at DailyFinance

Apple's iPhone Apology Weighs on Stocks

By John Maxfield, The Motley Fool

Filed under:

Steve Jobs must be rolling in his grave.

Early this morning, The Wall Street Journal reported that Apple has issued “an apology letter signed by chief executive Tim Cook that vowed to revamp aspects of its customer service policies in China after more than two weeks of pointed attacks by government-run media.” In case you’re curious (and can read Chinese), here’s the letter.

In it, Cook states: “We are aware that a lack of communications … led to the perception Apple’s attitude was arrogant and that we do not care and attach importance to consumer feedback. We express our sincere apologies for any concerns or misunderstandings this gave consumers.”

Apple was first targeted by the Chinese media in the middle of last month after the People’s Daily newspaper, the communist party’s “traditional mouthpiece” according to the Journal, accused the company of not responding to press inquiries and of treating Chinese customers differently from those living elsewhere. More specifically, the piece alleged that Apple fixes broken devices under warranty in China, rather than simply replacing them as it does in the United States.

In response to the original allegations, Apple posted a message on its Chinese website saying that it fixes iPhones with new components but then reattaches the original casing. It also claimed that “Apple’s Chinese warranty is more or less the same as in the U.S. and all over the world.”

Regardless of the veracity and motives behind the attacks, one thing is certain: The news is having a negative impact on Apple’s stock and is fueling negative sentiment among technology stocks more generally. With roughly an hour left in the trading session, shares of the technology giant are down 2.2%.

Following Apple‘s lead downward are virtually all of the tech stocks on the Dow Jones Industrial Average , which itself is off by 24 points, or 0.16%, at the time of writing.

Intel is the index’s biggest laggard today, down by 2% in afternoon trading. As my colleague Matt Thalman noted earlier, the chip maker found itself on the business end of an analyst downgrade. JMP Securities’ Alex Guana said he believes Intel’s full-year EPS will be lower than previously expected. He now expects it to come closer to $1.85 a share, versus his earlier forecast of $2.15 per share.

Shares of Hewlett-Packard aren’t far behind, down by 1.9%. Absent the dour sentiment among tech stocks, there doesn’t appear to be any concrete catalyst for HP‘s move. That said, given that HP is the Dow’s top-performing stock this year, up nearly 70% since the beginning of January, it’s always possible that traders are simply taking the opportunity to realize profits.

Is Apple’s stock doomed for good?
There’s no doubt that Apple is at the center of technology’s largest revolution ever and that longtime shareholders have been handsomely rewarded. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool’s senior …read more
Source: FULL ARTICLE at DailyFinance

China holds landing exercises in South China Sea

China says its navy visited its southernmost territorial claim during military drills in the disputed Spratly Islands in the South China Sea.

The visit to James Shoal followed exercises that began Saturday marking a high-profile show of China‘s determination to stake its claim to territory in an area that is disputed by Vietnam, the Philippines, Taiwan, Malaysia and Brunei.

The official People’s Daily online said Wednesday that one destroyer, two frigates and an amphibious landing ship took part in the drills around Chinese-controlled outcroppings. They involved hovercraft, ship-born helicopters, amphibious tanks, and land-based fighters and bombers, and were followed by a ceremonial visit Tuesday to James Shoal farther south.

The area is surrounded by shipping lanes and rich fishing grounds claimed in whole or in part by neighboring countries.

…read more
Source: FULL ARTICLE at Fox World News