March 24, 2013
The international market for goods is one of the most analyzed aspects of world economies. As we have seen recently, the smart phone market is rapidly expanding and it seems as though everyone either has an iPhone or an Android phone. These items allow owners to have 24/7 Internet access to do work, watch television, and keep up to date with Twitter, Facebook, and other social networking sites.
Recently in China, it has been noted that tens of thousands of students were forced to take out high-interest loans up to 47.12% per year. Despite this statistic, these Chinese students were buying expensive electronics, especially from Apple. Over the past two weeks, there have been two strong attacks against Apple criticizing their warrantee practices. On World Consumer Rights Day, these criticisms were made public when they claimed that Apple was discriminating against Chinese consumers by giving them shorter guarantees and using refurbished parts instead of new ones. Although Apple recently altered its policies for them, they still believe it is unfair. On Weibo, a social networking site, there were 50,000 hits insulting Apple within the first hour of the programming.
There have been some accusations against CCTV, the network that started the outrage against Apple, that they hired celebrities to bash Apple on Weibo. For more details, read this article on the subject (CCTV and Weibo).
Is Beijing beginning a campaign against Apple? Just look at its recent issues. They have continuously denounced foreign products, including big name companies Volkswagen and McDonalds. Apple executives did not see this coming and may be very concerned, considering China is their second largest market. Is this the beginning of a war?