Apple In China: Despite the fact that Apple Inc. (NASDAQ:AAPL) CEO Tim Cook has spent a lot of time in China this year alone, the Cupertino-based company does not seem to be making many friends in the country. For a company that realizes that China could be its biggest market moving forward, this is not good news.
Apple Inc. (NASDAQ:AAPL) may be the smart money’s second favorite publicly traded company but hedge funds have started dumping the Cupertino-based company in favor of a surprising financial stock (see which stock hedge funds are buying like crazy).
Before we go any further, it is important to note that any company as big as Apple Inc. (NASDAQ:AAPL) is going to make people mad from time to time. However, this time around things are getting ugly.
In short, Apple is in hot water for its warranty practices in China. Along with this, local journalists don’t care for the way they have been treated by the company as of late.
CNET has more on this story, and here is a brief excerpt explaining the basics of what is going on:
“Earlier today, The People’s Daily — which is owned by the Communist Party of China — ran a story criticizing the iPhone and Mac maker for its response to issues raised about its warranty practices in the country.”
If you want to check out the story by The People’s Daily in its entirety, you can do so by visiting this page.
The issue is based around a recent segment on China Central Television during which Apple Inc. (NASDAQ:AAPL)’s warranty was discussed. In short, the segment claimed “Apple repaired only broken or otherwise faulty parts within its products for customers in China, versus providing replacements in other countries.”
Rather than act like nothing happened, Apple did take the initiative and release a statement via its official Chinese website. You can read its online response here. In short, the company said that it respects its customers in China and is in compliance with all local laws.
Unfortunately for Apple, The People’s Daily did not really care what type of statement they released. Instead, they published a front page story earlier today scolding the company for not responding to interview requests.
Hopefully for Apple Inc. (NASDAQ:AAPL)’s sake, this story dies down sooner rather than later. After all, the company is experiencing greater growth in China than anywhere else in the world.
Check back here for more updates on Apple In China.
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DISCLOSURE: I have no positions in any stock mentioned.
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