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Popularity helps buffer Apple from Chinese state-media attacks

2013-03-27 09:57:06

By Melanie Lee | Reuters

By Melanie Lee

SHANGHAI (Reuters) - Chinese Internet users are crying foul over the perceived

unfair treatment doled out to Apple Inc by state-run media which has actively

criticized the smartphone maker for the past two weeks over its warranty

policy.

Apple and Volkswagen AG were singled out on March 15 by state-run China Central

Television in its annual corporate malpractice expose. CCTV accused Apple of

having discriminatory after-sales service in China compared to the rest of the

world.

Other state-run outlets have also run articles and editorials criticizing

Apple. On Wednesday, the Communist Party mouthpiece, the People's Daily, ran an

editorial attacking Apple for being filled with "unparalleled arrogance".

The editorial was rapidly shared by thousands of micro bloggers on Sina Corp's

Weibo platform but panned by many users who discredited the newspaper.

"Shameless People's Daily jealously scolding people... A brain-dead product of

the Cultural Revolution, old and so disgusting," said one micro blogger.

Other users were upset at the targeting of a foreign firm over a petty issue.

"We ordinary people feel that Apple is good and the government is trash.

There's obviously an implemented warranty policy, why must (Apple) be treated

differently?" said one user.

Another user asked where the newspaper was when it came to reporting on corrupt

on local ministries and poisonous milk.

"Do you wish to transfer our focus? Get the ordinary people to curse and blame

useless things? There's toxic air, toxic water and tainted milk...We are not

fools!" said another user.

The intense push-back from Internet users indicates the strong reputation of

Apple in China and shows the waning ability of China's state propaganda

apparatus to manage opinion online, analysts say.

"Some users may feel that there is an agenda behind focusing on Apple that has

more to do with pointing the finger at a famous international brand than the

desire to highlight genuine concerns for consumers," said Torsten Stocker, head

of Monitor Deloitte's Greater China consumer and retail practice.

Foreign firms are often taken to task very publicly in China where their

businesses and reputations are on the line. Late last year, Yum Brands Inc's

said its sales suffered after CCTV ran a report on the use of antibiotics in

its KFC chickens.

That story went viral on Weibo, which has over 500 million users, and many

Weibo users criticized Yum's handling of the incident. Facebook and Twitter are

blocked in China and Beijing faces the constant headache on how to balance

censorship while letting its citizens blow off steam.

Apple said in a statement on Saturday that it respected Chinese consumers and

that its warranty policies were roughly the same worldwide with specific

adjustments to adhere to Chinese law.

"Apple has come out relatively unscathed in this situation because consumers

have had largely positive experiences with the brand," said Benjamin Cavender,

associate principal analyst at China Market Research in Shanghai.

As for Volkswagen, CCTV said the direct shift gearbox transmission was causing

some cars to speed up or slow down during driving.

Last week Volkswagen, which sells more cars in China than any other foreign

firm, said it would recall 384,181 vehicles there to fix the problem.

(Editing by Kazunori Takada)