South Korean electronics giant Samsung Electronics Co has apologized to Chinese consumers after a lengthy report by China’s state-run television broadcaster detailed design flaws in the company’s smartphones.
The company, the most popular smartphone brand in the Chinese market, said in a statement that it “welcomed” Monday’s half-hour-long report by China Central Television (CCTV) and acknowledged that firmware problems have caused some of its Galaxy S3 and Note 2 models to crash.
“We sincerely apologize to our customers for the inconvenience, which resulted from management problems,” Samsung said in a statement posted on its Chinese Web site late on Wednesday.
Samsung’s rapid expression of contrition comes after state media subjected its US rival Apple Inc to a barrage of accusations of “unparalleled arrogance” earlier this year that only stopped following an apology by CEO Tim Cook.
In response to the CCTV report, Samsung is offering free repairs for customers whose phones have crashed, and will reimburse those who have already paid to have them fixed.
Free replacement phones will be offered to those whose handsets remain broken after being repaired twice.
“We sincerely thank our customers for your longstanding support,” the company’s Chinese-language statement read.
Samsung is the latest upmarket foreign firm to come under sharp criticism from China’s state-run media.
On Sunday, the day before the Samsung investigation aired, CCTV broadcast another show accusing US coffee chain Starbucks of overcharging its Chinese customers, featuring multiple correspondents and analysts who questioned the company’s motives in China.
Starbucks responded to the program by arguing that different operating costs in cities across the globe make comparisons of its drink prices in different markets inaccurate.
MEIJI MILK
In other news, Japanese baby milk maker Meiji yesterday said it was suspending sales in China because of rising costs and increased competition.
Meiji, the producer of Hohoemi and Step milk powder, has suffered a slump in sales in the country, a spokesman said.
Beijing imposed a ban on milk imports from Japan in 2010, when foot-and-mouth disease broke out in southwestern Miyazaki, but the company continued selling milk powder made in Australia, he said.
“Due to the rising costs of raw materials and increasingly fierce competition, the company has found it difficult to make a stable profit in the market,” the spokesman said.
“The company will consider resuming its milk powder business there when the market environment improves.”
Japanese-brand baby formula became very popular in China in the wake of a 2008 scandal when local manufacturers were found to be bulking their product with an industrial chemical.
However, the 2011 tsunami-triggered nuclear accident at Fukushima dented Japan’s reputation for food safety.
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