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Glen Yeung – Aljazeera Reports China Undermining Apple Brand Can Have Long Lasting Impact

Frances Henderson April 14, 2013 2 min read
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Glen Yeung, Managing Director, Citigroup
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I really have nothing snarky to say about Glen Yeung here (bolded his contribution). But what I did want to comment on is the quality of reporting by Aljazeera. This is really the best piece I have read so far, that get’s into the long term affects and systematic manipulation of people’s opinion, that is completely engineered.

I think the biggest point made here is that the Tim Cook apology was not the end, that was just the beginning. We may or may not get to see the full plan of the Chinese government unfold. It’s difficult when a country locks down information and puts pressure on it’s people.

Ulterior motives
Speculation has mounted over reasons for the attacks. “I think there’s a lot of things swirling together here,” said McGregor. “It starts with dissatisfaction with Apple’s customer service and, from what people say, a real attitude and arrogance by the company in the way they operated here.”

“But when CCTV and People’s Daily go after somebody like this, there’s a lot of political motivation. If you’re a foreigner doing business in China, it’s not enough just to come here and make money, you’re supposed to share your business with Chinese and do something that contributes to China. That’s just the way it works around here.”

The Chinese government has also been irked by the popularity of Google’s Android mobile operating system in China. “Our country’s mobile operating system research and development is too dependent on Android,” China’s Ministry of Industry and Information Technology said in a research paper published last month.

Android is the dominant smartphone platform in China, running on 86 percent of handsets shipped in the country during the final quarter of 2012.

Censorship at core
“China would rather not have foreigners have such a big piece of the market so I’m sure they’re happy if [the attacks] helps push for local brands,” said McGregor.

Although Chinese internet users have rallied to Apple’s defence, industry analysts believe the tech giant’s reputation has been dented in China.

“We have concerns about the impact of this propaganda on Apple’s China market share. We believe the undermining of Apple’s brand value can have a more insipid and long-lasting impact,” said Citi analyst Glen Yeung in a research report to clients last month.

“I think it’s unfair and I don’t know why this phenomenon exists. Why do we have to have different after-sales service than other countries?” said Kay Wei, a 21-year-old student.

“If they apologised, then we should really see some action,” said a Chinese investment banker who declined to be named. “As a responsible company, they should have come out and said that from the very beginning.”
SOURCE

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