China’s state sponsored propaganda, now in its third week, against Apple has been widely reported. It would have a devastating effect on Apple’s sales in China, to the tune of $13 billion, this according to Glen Yeung of Citi. Apple isn’t the only foreign company that has been the target of such campaigns. Toshiba was targeted back in 1999, the campaign resulted in the company losing its spot as the largest notebook vendor in China. HP was hit in 2010, the result was a 50% decrease of their PC share in the country. If Apple loses up to 50% of its market share in China it would equate to a $13 billion loss in sales.

Apple knows that losing market share in China is not good for business. It has been on the defensive, with CEO Tim Cook apologising for Chinese warranty issues that have only fueled the anti-Apple fire. Tim Cook says, while offering sincere apologies, that the misunderstandings are due to lack of public communication on the company’s part. Four major adjustments have been made to the warranty policy of Apple products in China. What do you think is the ultimate goal that China wishes to achieve by mounting a smear campaign against Apple?

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