Apple Apologise to China

Apple CEO, Tim Cook, apologised to Chinese consumers on Monday and altered the iPhone warranty policies; after more than two weeks of condemnation of its after-sales service. Most people in China, from the China Central Television to the People's Daily Newspaper, bashed the world's largest technology corporation for its "arrogance" and that its current one-year service warranty was much shorter than in other, smaller markets.

Apple initially dismissed those criticisms but have changed their mind and Tim Cook chose to apologise. He states that the world's second largest economy is a crucial market for the firm. "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." Cooks apology highlights that China's market is very important to them. The country is typically the brightest spot in Apple's quarterly financial statements. Revenue from Greater China — which includes Taiwan and Hong Kong — totaled $7.3 billion in its fiscal first quarter, up 60 percent from a year ago.

Cook also stated in the lengthy letter that Apple has "much to learn about operating and communicating in China." The country has been a prime market for Western corporations hoping to capitalise on its growing economic power; and increasingly affluent middle-class. Still, companies face many pitfalls operating in China. Apple is hardly the first Western brand to come under fire in the media territory as growth slows in the developed world. KFC was once in deep trouble too, for not following food safety and quality control policies. In the case of Apple, its iPhones, iPods, iPads and computers are considered to be aspirational products in China.