Apple to address iPhone 4 criticisms in emergency press conference

The antennae/reception issue are turning out to be a major embarrassment for a firm famed for its quality and design. Power to the crowd !


GSMA Business briefing
July 15, 2010

Apple is to hold a rare press conference tomorrow concerning the iPhone 4, reports the Wall Street Journal (WSJ). Although Apple has not provided any further information, it is thought the firm intends to address the mounting criticism over reception problems tied to the antenna design of the new device. "Given the intense pressure and scrutiny Apple has come under on the problem with the iPhone 4, it's going to be about some kind of fix or compensation for the owners of the phone," said Ed Snyder, an analyst with Charter Equity Research. Some analysts have even speculated about the possibility of an iPhone 4 recall, which would be a major embarrassment for a firm famed for its quality and design. Although the device has sold well since launching last month, it has been plagued with user complaints about dropped calls when the phone is held in a way that covers part of the antenna. The WSJ notes that what started out as a small number of users complaining about reception has now ballooned into a full-scale public-relations issue. "If they bury their heads in the sand, and don't engage in conversation and act in an arrogant way they're going to erode a bit of their brand," said Allen Adamson, managing director for Landor Associates, a branding firm.

Although Apple has already admitted the problem and pledged to fix the issue, the mounting criticism now appears to be hitting its stock. Reuters reports that shares in Apple slid more than 4 percent on Tuesday after a poor review of the iPhone 4 from Consumer Report, an influential US consumer guide. The consumer watchdog said the problems were a hardware defect - challenging Apple's claims that it was an easily-fixable software issue. One solution being suggested by analysts is for Apple to give away a US$29 rubber ‘bumper’ case, which they said would solve the antenna reception problem and would cost Apple between US$1 and US$5 per phone. In separate news, Light Reading Mobile reports that Apple has acquired Canadian 3D mapping company, Poly9, for an undisclosed sum. The firm has previously supplied mapping code to companies such as Microsoft and Yahoo.