From North America: Apple Inc. (NASDAQ:AAPL), the world's largest technology corporation, issued an apology to Chinese consumers on Monday after the state-run media blasted its repair policies for two weeks.
Apple, which initially rejected those criticisms, on Monday promised to overhaul its consumer practices.
"We are aware that owing to insufficient external communication, some consider Apple's attitude to be arrogant, inattentive or indifferent to consumer feedback," CEO 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."
State broadcaster CCTV and the ruling party's flagship newspaper, People's Daily, had led the charge against the leading American company.
They accused Apple of arrogance, greed and "throwing its weight around" and portrayed it as just the latest Western company to exploit the Chinese consumer.
Cook's apology, unusual though not as rare as during his predecessor Steve Jobs' tenure, highlights the importance of the market for Apple.
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.
China has long been a prime market for Western corporations hoping to count on its expanding economic power and increasingly affluent middle-class. Still, companies face many pitfalls operating in the country.
Criticism of Apple began on March 15, with the broadcast of an annual show on CCTV about consumer safety and rights, which has become an annual ritual targeting foreign, along with Chinese consumer firms.
The program assailed Apple for its after-sales service, including Apple's failure to offer new replacement iPhones with a one-year warranty in the case of major repairs.
Now, Apple will offer full replacements of iPhone 4 and 4S instead of major repairs, adding a one-year warranty starting from the date of replacement.
It will provide simpler and clearer explanations of warranties on its website and allow customers to offer feedback directly, Cook said. The company will also provide refresher training to service providers to explain the new warranty policy, he added.
Cook’s letter to Chinese iPhone users marks his second public effort to make amends with customers. He also apologized for the company’s mapping software in September after it was faulted for misguided directions and inaccurate landmark locations.
Shares of Apple dipped 3.1 percent to $428.91 at the 4 p.m. market close in New York on Monday, giving the company a market value of $402.77 billion. The stock has slumped 19 percent so far this year.
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