Forum Views ()
Forum Replies ()
Read more with google mobile :
Apple to address iPhone 4 flaw but recall unlikely
|
Edition:
U.S.
Article
Comments (1)
Save
Email
Print
Reprints
Most Popular
Most Shared
Factbox: Developments in the Gulf of Mexico oil spill
14 Jul 2010
Banks repossess US homes at record pace -RealtyTrac
12:01am EDT
Tired Gay succumbs to Dix in 200 meters
03 Jul 2010
BP says test shuts off oil from ruptured Gulf well
4:46pm EDT
Election looms for Democrats: How bad can it be?
14 Jul 2010
Bumper solves iPhone 4 antennas woes, Consumer Reports confirms
12:08am EDT
More than 1,000 exposed to dengue in Florida: CDC
13 Jul 2010
Apple to hold iPhone press conference Friday
8:06am EDT
Iran nuclear scientist returns home from U.S.
| Video
4:34pm EDT
Wall Street recoups losses on BP and Goldman
| Video
4:26pm EDT
Banks repossess US homes at record pace -RealtyTrac
12:01am EDT
Tired Gay succumbs to Dix in 200 meters
03 Jul 2010
Argentina approves landmark gay marriage bill
| Video
1:32pm EDT
More than 1,000 exposed to dengue in Florida: CDC
13 Jul 2010
Apple to hold iPhone press conference Friday
8:06am EDT
No oil leaking in Gulf amid well test-BP exec
3:42pm EDT
Wall Street reform clears Congress
4:48pm EDT
Ever sent a racy text to the wrong person?
13 Jul 2010
U.S. advisers reject Vivus fat-fighting pill
4:30pm EDT
Japan's NTT to buy Dimension Data for $3.2 billion
12:04pm EDT
Apple to address iPhone 4 flaw but recall unlikely
Digg This
Tweet This
Share on LinkedIn
Share on Facebook
Related News
RPT-PREVIEW-UPDATE 1-Apple on the defensive as earnings approach
7:00am EDT
UPDATE 2-Apple to hold iPhone press conference Friday
Wed, Jul 14 2010
Consumer Reports says iPhone case fixes reception problem
Wed, Jul 14 2010
Apple shares slide as iPhone 4 concerns grow
Tue, Jul 13 2010
UPDATE 3-Apple shares slide as iPhone 4 concerns grow
Tue, Jul 13 2010
Related Topics
Technology »
iPad »
Media »
A customer displays an iPhone 4 purchased at the Apple Store 5th Avenue in New York, June 24, 2010.
Credit: Reuters/Eric Thayer
By Gabriel Madway
SAN FRANCISCO |
Thu Jul 15, 2010 4:19pm EDT
SAN FRANCISCO (Reuters) - Apple Inc is likely to announce a fix for the iPhone 4's reception problems on Friday, hoping to stem a growing chorus of complaints and avert any lasting damage to its carefully earned reputation for quality products.
Apple, which surprised consumers and investors when it said it will convene an iPhone 4 press conference, has kept mum on what it will do. But analysts are betting that -- despite lawsuits, a poor review from Consumer Report and growing user complaints -- it will not initiate a costly and embarrassing recall.
Investors will be looking for a fuller explanation of what analysts call a minor issue that has managed to cause a media firestorm. A growing furor over iPhone 4 signal-strength flaws has hurt Apple's shares ahead of its quarterly results next week.
Since June 28 -- days after the launch, when complaints about faulty reception began surfacing on Internet technology websites -- Apple has lost about $16 billion in market value, with at least some of that related to the iPhone controversy.
The stock fell as much as 2.1 percent on Thursday, before closing down 0.5 percent at $251.45 on Nasdaq.
"We do believe that Apple needs to be more proactive in identifying and addressing the issues for the iPhone 4," BMO Capital Markets analyst Keith Bachman wrote in a research note. "A real risk is if the press keeps talking about this issue, iPhone 4 growth could slow."
Some analysts suggest Apple could simply offer free protective cases for the device -- which prevent the signal interference -- at a cost of $1 to $2 each. But with at least 1.7 million iPhone 4s sold -- that figure was for just the gadget's first three days -- that solution will cost millions.
Bloomberg on Thursday reported that Apple's senior antenna expert had voiced concerns to Chief Executive Steve Jobs in the early design phase of the iPhone 4 that the antenna design could cause dropped calls. The report cited a person familiar with the matter.
Asked about the report, Apple spokesman Steve Dowling said "it's simply not true."
Some users of the phone complain that reception turns weak when the device is held in a certain way that has come to be jokingly called the "iPhone 4 death grip." But the problem does not appear to be widespread.
QUICK FIX
Apple has blamed a software glitch that overstates network strength, but others have said the antenna on the redesigned device is at fault.
Cross Research analyst Shannon Cross expected Apple to use the press conference to provide a remedy to users who are experiencing the problem, and try to redirect attention back to the iPhone 4's strengths.
"We do not expect a recall and believe Apple will quickly move past this issue," Cross wrote in a research note.
She said Apple could provide free, low-cost iPhone cases -- which appear to solve the reception problem -- to consumers at a cost of $1 to $2 each, or less than 5 cents a share.
And it could add a thin coating over the antenna in future models to fix the issue, Cross added.
Analysts noted that Apple has bowed to pressure in the past to mollify consumers. In 2007, after Apple slashed the price of the original iPhone two months after it went on sale, the company offered a $100 store credit to appease angry buyers.
Apple's July and August option implied volatility, which measures the expected magnitude of share price movement, surged on Thursday.
In all, about 214,000 calls and 158,000 puts traded in Apple, above its combined average daily volume of 290,000 contracts, according to option analytics firm Trade Alert.
"Apple option traders are bracing for a big move in the underlying shares boosted by uncertainty over the iPhone 4 smartphone and next week's earnings," said Jon Najarian, a co-founder of Web information site optionMonster.
"Professional investors believe this is a big deal judging by the amount of Apple options that are being bid up on both the call and put side, indicating how nervous players are."
(Additional reporting by Doris Frankel; Editing by Edwin Chan and Richard Chang)
Technology
iPad
Media
Comments
See All Comments (1) | Post Comment
Jul 15, 2010 2:54pm EDT
Milanesi does your new phone work…hah… why you are so quiet..?=)
FSC
Report As Abusive
See All Comments (1)
Add a Comment
*We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.
© Copyright 2010 Thomson Reuters
Editorial Editions:
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
United States
Reuters
Contact Us
Advertise With Us
Help
Journalism Handbook
Archive
Site Index
Video Index
Reader Feedback
Analyst Research
Mobile
Newsletters
RSS
Podcasts
Widgets
Your View
Labs
Thomson Reuters
Copyright
Disclaimer
Privacy
Professional Products
Professional Products Support
Financial Products
About Thomson Reuters
Careers
Online Products
Acquisitions Monthly
Buyouts
Venture Capital Journal
International Financing Review
Project Finance International
PEhub.com
PE Week
FindLaw
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Other News on Friday, 16 July 2010 Libyan aid ship docks at Egyptian port
Freed dissidents say disease rampant at Cuban jails
US-TECH Summary
At least 21 killed in Iran suicide attack: report
|
Russia has identified Estemirova's killer: Medvedev
Rivalries, economy cloud Google expectations
Pakistan and India agree on talks
|
'Significant advances' made towards AIDS vaccine
Penthouse owner makes $210 million bid for Playboy
Boeing says delivery of first 787 may be delayed to 2011
Facebook page praising British killer removed after row
NATO launches Afghan intelligence-sharing drive
|
Wall Street overhaul clears Senate, heads to Obama
Half of social networkers worried about privacy: poll
Freed prisoners describe life in Cuban jails
|
French foreign ministry probes fake website
Kenya goes hi-tech to curb election fraud
French police hold key figures in Bettencourt case
|
Five billion mobile phones in use worldwide: study
Court orders release of former Congo warlord Lubanga
|
Microsoft co-founder Paul Allen pledges fortune to philanthropy
Amazon accused of infringing patents with Kindle
Five billion mobile phones in use worldwide: study
Renshaw thrown off Tour for headbutts on Dean
N.Korea demands to see evidence on ship sinking
US army hands over last prison in Iraq
British diplomacy to prioritise business: Hague
More than 900 World War II munitions found in Japan
Indonesia lukewarm on Australia asylum centre plan
U.S. ready to talk to North Korea in right circumstances
Apple to address iPhone 4 flaw but recall unlikely
|
Louis Vuitton opens first Lebanon store
Frustration for Korea's Noh at British Open
Robbie Williams rejoins British band Take That
Still plenty of demand for iPad: survey
|
Microsoft co-founder Paul Allen pledges fortune to philanthropy
|
US-ENTERTAINMENT Summary
Singer Robbie Williams to rejoin Take That
Half of social networkers worried about privacy: poll
|
Lindsay Lohan reported in rehab ahead of jail term
FCC eyes satellite spectrum for broadband use
|
Boney M to bring disco fever to West Bank festival
Mandela concert postponed in Spain
China boosts offer for WTO pact on government contracts: US
A Minute With: Director Nolan talks about "Inception"
India's TCS quarterly profit jumps 21 percent
China's first micro-winery wins plaudits
Acer, Asus and Lenovo lead pack as PC sales surge
South Korea unveils new measures to attract foreign tourists
Fresh strike hits Honda's parts plant in China
China's growth slows in second quarter
Japan's NTT to buy South African IT firm Dimension Data
Japan central bank raises growth forecast
Japan's Sanyo sells chip business to ON Semiconductor
China's Geely chairman to head up Volvo Cars
Lindsay Lohan reported in rehab ahead of jail term
|
Singer Robbie Williams to rejoin Take That
|
Katy Perry fends off Eminem on U.S. singles chart
|
A Minute With: Director Nolan talks about Inception
|
27 killed in Iran twin suicide mosque bombings
Iran scientist was longtime informant
Putin takes Van Damme to ultimate fighting match
What This Chinese Hacker Could Teach Apple
Iran scientist was longtime informant: report
|
At least 21 killed in Iran suicide attacks
More than 20 killed, 100 wounded in Iran blasts
2 US troops killed by bomb blast in Afghanistan
Obama's daughter to attend summer camp
NATO launches Afghan intelligence-sharing drive
|
Europe woes and iPhone surge to hit handset vendors
Apple to hold press conference on iPhone 4
June Earth's hottest ever: US monitors
At least 21 killed in Iran suicide attacks
|
Google shares down as results fall short
No oil flowing into Gulf as test starts: BP
Afghan health team abducted; local official killed
Apple faces music on iPhone flaw but recall unlikely
Fire kills at least 40 in northern Iraq city
|
Discovery says infringement case v Amazon not new
Chavez communes stoke Venezuela democracy debate
|
China hospital refuses to treat woman with HIV
Striking workers at Honda China supplier demand apology
|
Still plenty of demand for iPad: survey
Malaysia seizes endangered reptiles
Penthouse owner makes $210 million bid for Playboy
Philippine power restored after typhoon rampage
Three dead in Mexico in drug cartel attack
|
All Blacks gear for 'huge' Springboks battle
Australia set for poll focused on economy: report
|
NY lawyer in terrorism case gets 10 year sentence
Fidel Castro, out of seclusion, appears again
|
Philippines charges former minister with graft
Global Weather-Celsius
N.Korea builds 'shrine' to leader's likely successor
Mistake to free Lockerbie bomber: British ambassador
Australian PM poised to call August 28 election
Celebrities Who Make Music
Australia set for poll focused on economy
The 10 Richest Presidents
Mine managers detained over toxic China spill
What This Chinese Hacker Could Teach Apple
Ancient species discovered in Barrier Reef depths
Primetime TV shows to get racier after court ruling
"Winter's Bone" star cast in "X-Men: First Class"
Smartphones boost Sony Ericsson Q2
|
The World's Most Fabulous, Most Affordable Wedding Gowns
Europe woes and iPhone surge to hit handset vendors
|
The World's Happiest Countries
S.Korea sees smaller deficit in 2010 on recovery
Taiwan stocks join regional falls; techs slip
Luxury Clothes For Kids
Seoul shares fall led by Hynix, LG Display
World's Weirdest Diets
Malaysia cuts subsidies in surprise move
Google profit misses as expenses surge
|
Don't shun Euro, French PM tells Japan investors
PAKISTAN
Dollar weak on poor US data
S.Korea Honam to buy Malaysia Titan for $1.27 bln
Toyota to build third plant in Brazil
AIG Taiwan unit buyers make more concessions-paper
Lindsay Lohan reported in rehab ahead of jail term
|
Mel Gibson custody battle back in LA court
|
Michigan pair convicted in John Stamos extortion plot
|
TV personality Erin Andrews sues Marriott hotels
|
Primetime TV shows to get racier after court ruling
|
Inception dreams up big box office despite doubts
|
Winter's Bone star cast in X-Men: First Class
|
Country composer, performer Hank Cochran dies
|
Penthouse owner offers $210 million for Playboy
|
Turkey reopening ancient Armenian church to heal wounds
Hundreds drown in Russia heatwave
Foreigners among 30 dead in Iraq hotel blaze
Smartphones boost Sony Ericsson Q2, sees more growth
'Yorkshire Ripper' must die behind bars: court
Goldman Sachs agrees record $550m fine
Electronic Arts exiting France's Ubisoft
Four Americans among dozens killed in Iraq hotel fire
Hotel fire kills 30 in Iraq's Kurdish north
Italy sweltering in major heatwave
Women priests and sex abuse not equal crimes: Vatican
|
Scientists devise guide to the perfect handshake
Lebanon arrests third 'telecom spy'
Blast in Pakistan's Khyber kills eight: official
|
NATO airstrike kills Taliban commander, police say
Smartphones boost Sony Ericsson Q2, sees more growth
EU judges bar extradition of Kosovo man to U.S.
|
NATO airstrike kills Taliban commander in north
U.S. urges Thailand to end emergency rule
|
Chavez communes stoke Venezuela democracy debate
|
Indonesia pledges forests for orangutan conservation
Heavy rains, floods kill 24 in Yemen and Saudi
|
Germany's Merkel urges China to open up markets
Pakistan market bomb kills 10
Iranian scientist was CIA asset for years: NYT
Pakistan blames India for lack of progress in talks
At least eight dead as heavy rains lash Japan
Londonderry named first city of culture
Thai customs make million-dollar ivory seizure
Robbie Williams rejoins British band Take That
N.Zealand inventors unveil bionic legs for paraplegics
Pakistani stocks end up; rupee flat; o/n rates down
Dollar touches year-low against yen
Apple faces music on iPhone flaw but recall unlikely
|
Sony Ericsson reports profits bounce
Electronic Arts exiting France's Ubisoft
|
Pakistan needs rate rise to fight inflation-economists
Daimler in truck deal with China's Foton
Pakistan's FY09/10 c/a deficit narrows to $3.507 bln
Half of social networkers worried about privacy: poll
|
Indonesia overturns Tommy Suharto ruling
S.Korea apartment prices post 1st weekly fall in 16 mths
Pakistani cbank buys 8 bln rupees of govt paper
George Clooney testifies in Milan fashion fraud case
|
Pink rushed to hospital as stunt fails
|
Amy Winehouse eyes new album in early 2011
|
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights