Image via CrunchBase
Apple has decided to apologize to China's growing consumer class following criticism of its after-sales policy in its fastest growing market. So what does the apology mean?
First it means that Apple has decided to sensitize itself to what will soon be its largest market, after a delay that should raise questions about its judgment - this row has been brewing for nearly a year.
But it also seems that the official line towards Apple has softened very rapidly.
Xinhau.net, the online service of China' official news agency, Xinhau, had carried further complaints about Apple, Saturday, from the Chinese Consumer Association. The CCA accused Apple of discriminatory practices in China and of arrogance.
What angered the consumer movement was that Apple had singled out is "unique consumer experience" in response to a TV program that accused the company of poor after sales service.
In a report today, however, Reuters says that by apologising Apple has gone from pariah to praiseworthy:
The Foreign Ministry praised Apple for "conscientiously" responding to consumers' demands. "We approve of what Apple said," spokesman Hong Lei told a daily news briefing on Tuesday.
It's a big, and quick, turnaround for Apple. Citi analyst Glen Yeung had earlier warned that the company risked losing up to 50% of its growing market-share in China and put its proposed deal with China mobile at risk by not responding adequately to complaints.
The state newspaper, the People's Daily, also now criticizes Chinese companies for creating an environment that does not respect consumer rights, a theme taken up by social media commentators.
On the apology the BBC reports that "a statement on Apple's China website said "misunderstandings" may have led to the perception "Apple's attitude was arrogant" towards Chinese customers."
Tim Cook wrote:
"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."
The lesson though is that the norms Apple wants to apply in its traditional strongholds like the US are not going to hold in emerging markets. In China, in particular, there is a sense that Apple products benefit from Chinese manufacturing resources and consumer eagerness, and that this carries a price in a country that wants to build out its own innovative, consumer electronics industry.
But other vendors are providing unofficial incentives to secure local loyalty - Samsung for example has increased it s local manager count from 20% Chinese to 70% and in Africa is training 10,000 engineers as part of its growing presence there.
It goes against the grain for Apple to think this way, even to the extent of admitting fault, but it won't be the last time that Tim Cook seeks ways of appeasing local opinion. It's taken a year for Apple to come round on this one but observers are noting that in future it must pre-empt criticism and protectionism.
With the apology and warranty change, Apple's mea culpa is significant not just because it comes from a tech firm that rarely apologizes, but also because Apple may be realizing that in China, it needs to be proactive.
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