Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL), Google Inc (GOOG): Oh China! Give up Some Slack

Page 1 of 2

The Shanghai Stock Exchange Composite Index is down 0.10% while the NASDAQ is down 0.87% after rallying the past few days. Contributing to the fall of the NASDAQ is the performance of the manufacturing stocks.

China is indisputably a large market to contend with. This is the reason why some US companies are rethinking their China policy when it comes to their products and services. Let’s take a look at three US companies with issues in China.

Apple Inc. (NASDAQ:AAPL)

Apple Inc. (NASDAQ:AAPL) bends backward over service issues

Apple Inc. (NASDAQ:AAPL) Chief Executive Tim Cook apologized for the company’s iPhone warranty and repair policies in China after the state media accused the firm of arrogance and greed. Its stock swooped down in its biggest decline since Jan. 24. To retaliate, Tim Cook promised to improve training, customer service and monitoring of stores authorized to sell its products in China.

“We are aware that a lack of communications led to the perception Apple Inc. (NASDAQ:AAPL)’s attitude was arrogant and that we do not care and attach importance to consumer feedback,” Mr. Cook wrote. “We sincerely apologize to our customers for any concern or confusion we may have caused.”

While China may be a big market after the US, with sales of $22.8 billion in 2012, Apple Inc. (NASDAQ:AAPL) still lags behind other smartphone manufacturers like Samsung Electronics and Lenovo. They still have to contend with the fact that China’s biggest wireless carrier, China Mobile Ltd. (ADR) (NYSE:CHL), is not selling its iPhone to consumers.

This apology underscores Apple Inc. (NASDAQ:AAPL)’s bid to make China Mobile Ltd. (ADR) (NYSE:CHL) its biggest source of revenue in the coming years.

Google Inc (NASDAQ:GOOG) searches for less censorship on digital media

Google Inc (NASDAQ:GOOG) might be one of the best places to work for but apparently, China’s political leadership does not like its hold on the internet crowd. In a move to curtail searches that are done on the internet, online censorship is being done by the Chinese authorities. This has been a sore point between Google Inc (NASDAQ:GOOG) and Chinese authorities since May last year.

In a move to warn its China users of the censorship, they quietly dropped warning messages but to no avail. The battle was lost when Google Inc (NASDAQ:GOOG) decided last December that the effort to fight the technical disputes was not productive since users were still being disconnected by Chinese authorities.

Page 1 of 2