STATEMENT OF FACTS:

In 2013, an issue arose involving the giant American gadget icon, Apple, and its
Chinese market in China. Apple was accused of being arrogant and doesn’t care or
value consumers’ feedback. The main conflict lies between Apple’s repair and
service warranty and China’s “Three Guarantee”. Apple gives a warranty of one year
on its products, which runs conflict with the laws of China that gives two-year
warranty. This issue prompted Apple’s CEO, Timothy Cook to issue public apology to
its Chinese costumers through a letter in April 2013.

Conflict/Issue:

Discrepancy between that of Apple’s warranty period and that warranty period
provided by Chinese Law.

Challenges:

One of the challenges to the negotiation process is the cultural barrier between the
Chinese customers and that of Apple, an American company. Initially, Apple failed to
answer the accusations against them, but the roughness of the situation was
remedied by the timed and sincere apology of Apple through letter to Chinese
costumers.

Another challenge to the negotiation is the arising conflict between the US

Government as then President Obama was pressuring China to address computer
hacking attacks on American companies that originated from China. This gives more
fire to the issues involving Apple and its Chinese customers.