China Labor Watch alleges that Pegatron, a Chinese electronics manufacturer whose lengthy client list includes Apple, has been abusing its employees with poor working and living conditions. Predictably, the mainstream and tech media alike has linked these allegations to Apple. Now Apple has responded with a statement, according to the Wall Street Journal.
In today's conference call after the Q2 2013 fiscal results, Apple CFO Peter Oppenheimer revealed that Apple products are selling like gangbusters in East Asia. In China and Japan both, iPad sales more than doubled this quarter from the quarter the year prior. In China specifically, iPad sales were up 138% from last year.
In the not-so-distant past, Tim Cook has been quoted as saying he expects China to emerge as the company’s largest source of revenue. Back in January, we discussed this growth in China, along with Asymco.com’s estimate that China would overtake US sales at Apple by 2016.
Following Tim Cook’s apology yesterday, the state-controlled media in China has begun to praise Apple after a constant barrage of negative stories over the past couple of weeks. Apple’s apology and policy change were inevitable, as the company was an underdog against the Chinese state media machine. At least according to Reuters:
Apple CEO Tim Cook has announced changes to Apple’s warranty policy in China, along with apologizing to Chinese customers for any confusion with the original policy. In a letter on Apple’s Chinese website, Cook announced that going forward, Apple would provide more warranty information and train staff members based in China better.
Apple is being sued by a state-run animation studio in China over apps that contain unlicensed material from the studio. Shanghai Animation Film Studio is seeking total damages of 3.3 million yuan, or $530,000.
CEO Tim Cook reportedly held an all-hands Town Hall meeting last week to address the state of the Apple with employees. Subjects covered were said to include employee perks, production from supply chain to sales, the retail stores, the competitive landscape with Google's Android, and opportunities in China. 9to5Mac's ace reported, Mark Gurman, has a full rundown. Here's a highlight from the competitive part:
Earlier this week, Asymco’s Horrace Dediu wrote a wonderful post about the huge differences between Microsoft and Apple in China. He makes a very strong case for how difficult of a position Microsoft is in. I encourage you to the Asymco post in detail to understand his arguments. Pretty compelling stuff.