Apple’s apology necessary to reach broader market than devoted fans

By Li Haihong Source:Global Times Published: 2013-4-11 20:13:01

After more than two weeks of criticism in China's State-run media of its after-sales service, Apple's CEO Tim Cook apologized on the official website to Chinese consumers on April 1 and altered iPhone warranty policies.

China Central Television (CCTV) criticized Apple's after-sale services of iPhone in China because it gave only a one-year warranty, while in China relevant law regulates it should be two years. It also said that phone owners had to pay about $90 to replace a faulty back cover.

Before the official apology, there had been waves of criticism regarding the company's unfair customer service in China, either on television channels, portal websites, or social media like Weibo.

What's astonishing is that it was reported on the evening news of the CCTV, which reaches a far different and wider audience.

Honestly I didn't take it seriously when the media broadcast an investigation report on how Apple mistreats consumers in China on the World Consumer Rights Day, March 15.

Like so many of my friends, I have used an iPhone for many years, and I like both the shopping experience in Apple store and product design. I didn't have much chance to use after-sales service since my phone has stayed in good conditions. But anyway, it is good to have another year's warranty.

What's interesting is that I have seen two very different reactions to this media exposure.

As users, most Apple fans expressed their support, saying things like "Why is the media attacking Apple? Apple is known for great service."

Meanwhile, non-users naturally expressed their anger and negative attitudes to the brand.

As the media was their only source of information on this affair, it's understandable these non-users felt things like  "Apple is arrogant. Apple is not to be trusted."

Many Apple users have been expecting Apple to give no response to the media condemnation. And they were disappointed, or even a bit angry, when Cook apologized on Apple's official website.

I don't think this apology will influence Apple fans' enthusiasm for its products.

In China, typical iPhone consumers are highly educated, have good incomes, and are more skeptical than most. They won't easily alter their attitudes toward Apple products just because of some media reports. After all, there are so many more serious problems to be criticized in the consumer market.

However, for non-users, the whole affair framed Apple in an arrogant light.

The apology might be necessary, because the company doesn't want to lose so huge a market. Apple doesn't want to be another Google. Three years ago, Google decided to withdraw from the Chinese market.

Since then, its share of the search engine market has dropped greatly, and it also lost the business opportunity of the mobile Internet.

And the apology is necessary from the perspective of market strategy. Although Apple enjoyed the highest net profit, its market share has been taken by competitors.

 To keep its market share from being nibbled by Android phones, Apple urgently needs to reach more customers in emerging markets. The number of Android users in China, 160 million, was almost twice the size of iOS users in 2012. And an Android phone costs on average less than half the price of an iPhone.

Furthermore, Apple's hardware competes with domestic rivals like Huawei and Lenovo, and Chinese companies are beginning to develop operating systems like Smartisan and Ubuntu Kylin that hope to chip into the dominance of Western software.

Generally, Apple needs the apology in order to clear the hurdle in reaching a broader base of consumers, a lot of whom tend to believe whatever they hear from the media.



The author is a white-collar worker in Shanghai. opinion@globaltimes.com.cn



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