LOOK: Copycat Apple Watches already out in China

SHENZHEN/HONG KONG - Lining the glass display cases of Shenzhen's giant tech malls, knock-off versions of Apple Inc's smartwatch were on sale at many stalls, with some Chinese consumers eager to snap them up for a fraction of the cost of the original.

"It came on sale in mid-March and has been constantly out of stock," said one imitation Apple Watch seller who declined to give his name. "On average we sell around 40 a day. Some customers just came and bought five or more at a time."

The mimic Watches, built on Google Inc's operating system, don't need a separate smartphone to work, said one merchant. At her store, one was retailing for 360 yuan ($58) - around one eighth of the cost of Apple's cheaper Watch models.

One version used a SIM card, could make calls, send messages, browse the Internet and take pictures, she said.

On Friday, Apple, the world's most valuable technology company, started previewing the Apple Watch, its first new gadget line since former CEO Steve Jobs died in 2011. Customers in China and elsewhere will be able to buy it from April 24.

In Hong Kong, the official Apple Store preview of the Watch was quiet. No queues stretched down the street as they normally do for Apple product launches. A handful of people waited at the door, outnumbered by Apple staff whose cheers lasted a handful of seconds.

Most of the shoppers from mainland China, who commonly cross the border to pick up the latest Apple must-have, were there for other gadgets.

"I'm here to buy an iPad," said a shopper from the southwestern city of Chongqing, who gave her surname as Jian and said she didn't know the previews launched that day.

"I will take a look at the Watch later ... none of my friends have talked about the Watch back home."

But the technology bazaars in the southern Chinese boomtown of Shenzhen were chaotic on Thursday. Merchants hawked their goods to Chinese and foreign shoppers, showing off different smartwatches' various colours and models.

Some weren't impressed with the imitation Apple Watches.

"I really want to buy the original one," said Vikram Jan an Indian businessman from New Delhi shopping in Shenzhen. "The fake one is really bad."

Though the knock-offs have their admirers, some merchants are doubtful about the impact on genuine Apple Watch sales.

"You know some want the real thing and some just want to go for the cheaper option," said the woman selling knock-off watches. "There are all kinds of customers and people who want the cheaper one would still buy our product."

source: www.abs-cbnnews.com

Why did Samsung apologize to China consumers?

BEIJING - South Korea's Samsung Electronics Co Ltd, the world's biggest smartphone maker, has apologized to Chinese customers for problems with some mobile phones after a broadcast on China Central Television criticized Samsung repair policies.

"As far as management problems caused inconvenience to our customers, we offer our sincere apologies," Samsung Electronics said in a notice on its Chinese website.

Samsung Electronics is the latest multinational company to be singled out by Chinese state media for what it says are unfair consumer practices. In a 25-minute programme broadcast late on Monday, CCTV said internal multimedia cards cause the software on Samsung Electronics Note and S series smartphones to seize up.

Samsung Electronics said it will fix the Galaxy S3 and Note2 telephones free of charge, and refund customers who already paid for repairs to the devices at authorized service centers. The company also will offer replacements or refunds for phones that could not be repaired.

The broadcast on Samsung Electronics came the day after CCTV aired a program criticizing Starbucks Corp SBUX.O for charging higher prices in China than other markets.

In March, CCTV criticised Apple Inc, the world's second-biggest smartphone maker, for using different warranty and customer service polices in China than in other countries. Apple Chief Executive Tim Cook later apologized.

source: www.abs-cbnnews.com

Starbucks overcharging Chinese consumers?

BEIJING - Starbucks has become the latest foreign firm to be roasted by China's state-run media, with a series of accusations that the world's largest coffee shop chain is overcharging Chinese consumers.

State broadcaster CCTV aired a seven-minute report criticising the firm's pricing in China, arguing that a tall latte in Beijing is more expensive than in London, Chicago and Mumbai.

The report on Sunday gave the price of a Beijing latte as 27 yuan ($4.42), compared with 24.25 yuan ($3.97) in London, 19.98 yuan ($3.26) in Chicago and 14.6 yuan ($2.39) in Mumbai.

It came after a stream of print stories attacking the Seattle-based firm, with the state-run Economic Information Daily accusing it of "profiteering".

The China Daily newspaper last week took aim at the chain in an article headlined: "Starbucks can't justify high prices in China."

The allegations come after US tech giant Apple was subjected to a barrage of attacks earlier this year over its warranty policy and customer service, which state media cited as examples of its "unparalleled arrogance" toward Chinese consumers.

The criticism stopped after Apple CEO Tim Cook apologised.

Foreign baby formula and pharmaceutical firms have also recently been targeted by authorities over allegations of price-fixing and corruption.

The clampdowns are partly an official response to public frustration over high prices for imported goods, analysts say, but by singling out largely overseas firms they have raised alarm in the foreign business community.

The media focus on Starbucks was because "most probably Starbucks is the biggest and most famous" coffee chain in China, said Kevin Yeong, managing director of the Benchmark Asia Research Group.

"For the past few months, I've been very concerned about...any foreign-owned company, because it looks like the local government is trying to do something to restrict foreign companies," he added.

In a statement Starbucks said that its pricing in different cities is based on a variety of factors, including infrastructure investment, real estate, currency valuation and labour costs.

"Each Starbucks market is unique and has different operating costs, so it would be inaccurate to draw conclusions about one market based on the prices in a different market," the company said.

"We continue to be humbled by the support we have received from our customers and the relevant authorities within the Chinese government," it added.

But on its verified account on China's hugely popular microblogging site Sina Weibo, it posted a photo of a pencil with a toy horse on its end -- a visual pun on a highly offensive Chinese obscenity.

Starbucks opened its doors in China in 1999 and now has more than 1,000 stores in the country and growing.

China is likely to overtake Canada as Starbucks' second-largest market after the US next year, and it is aiming to reach 1,500 stores by 2015, according to a spokeswoman.

Analysts said price differences could be explained not only by Starbucks' varied operating costs across the globe but also by the different role the coffee chain plays in the lives of Chinese consumers.

In the US, Starbucks gets much more of its revenue from takeaway sales. But in China most business comes from customers who take their time inside the store, noted James Roy, a senior analyst with the Shanghai-based China Market Research Group.

"In China, it's a different positioning and a different value proposition," he said. "They invest more in making these stores themselves more premium options and making more of the environments as well."

One new location opened in Beijing last month is a glistening two-storey, 24-hour store featuring live music at the weekend.

Yeong noted that while Starbucks' prices may be cheaper outside China, they are on a par with -- and in some cases, cheaper than -- those of its foreign competitors within China.

Some Internet users mocked the CCTV report.

"The price of housing, cars and gasoline, Internet service and taxes in China are all more expensive than in other countries," argued one Sina Weibo user. "Why can't Starbucks be more expensive, too?"

source: www.abs-cbnnews.com