'Worst case' in iPhone reception issue: Apple gives away bumpers
Despite well publicized reports of iPhone 4 reception issues, one analyst said he sees Apple, in the "worst case," discounting or giving away protective bumpers with little financial impact on the company.
Analyst Shaw Wu with Kaufman Bros. issued a note to investors Friday in which he discounted the antenna concerns as "overdone." Since the iPhone 4 launched, discussion of dropped calls from holding the device in one's left hand has grown, and Apple even publicly commented on the issue.
"We don't think the antenna issue is that big of a deal where it would warrant a product recall," Wu wrote. "The reason is that most users have a case anyway to protect their iPhone and to customize to their personal preferences. In our view, in the worst case, Apple provides a discount on the $29 iPhone 4 bumper case or includes one for free with an iPhone 4 purchase. Either way, we do not think this would have a material impact impact on our forecasts."
Apple, in a statement, said that gripping any mobile phone will affect its antenna performance. The company suggested that users avoid gripping the device in the lower left corner.
But the problem is also alleviated by using a case, which prevents the metal band around the perimeter of the device from making contact with the user's skin. The issue can reportedly be avoided when using the official "bumper" case sold by Apple.
Wu is particularly bullish on Apple's launch of the iPhone 4, predicting that the company sold between 1.5 million and 2 million units. On the high end, that would double the debut of the iPhone 3GS a year ago.
Wu's prediction of 2 million is higher than other analysts who believe Apple will sell closer to 1.5 million of the iPhone 4 at launch. Last week, after the first day of preorders, Apple revealed that more than 600,000 devices had been sold.
Analyst Shaw Wu with Kaufman Bros. issued a note to investors Friday in which he discounted the antenna concerns as "overdone." Since the iPhone 4 launched, discussion of dropped calls from holding the device in one's left hand has grown, and Apple even publicly commented on the issue.
"We don't think the antenna issue is that big of a deal where it would warrant a product recall," Wu wrote. "The reason is that most users have a case anyway to protect their iPhone and to customize to their personal preferences. In our view, in the worst case, Apple provides a discount on the $29 iPhone 4 bumper case or includes one for free with an iPhone 4 purchase. Either way, we do not think this would have a material impact impact on our forecasts."
Apple, in a statement, said that gripping any mobile phone will affect its antenna performance. The company suggested that users avoid gripping the device in the lower left corner.
But the problem is also alleviated by using a case, which prevents the metal band around the perimeter of the device from making contact with the user's skin. The issue can reportedly be avoided when using the official "bumper" case sold by Apple.
Wu is particularly bullish on Apple's launch of the iPhone 4, predicting that the company sold between 1.5 million and 2 million units. On the high end, that would double the debut of the iPhone 3GS a year ago.
Wu's prediction of 2 million is higher than other analysts who believe Apple will sell closer to 1.5 million of the iPhone 4 at launch. Last week, after the first day of preorders, Apple revealed that more than 600,000 devices had been sold.
Comments
I'd rather they had better designed/engineered the device prior to release, as opposed to this (proposed) half-hearted 'fix'.
Again, I think they need to look at changing the design going forward, but assuming that bumpers do solve the problem I don't see why they'd be on the hook for anything beyond that.
Personally...
I'd rather they had better designed/engineered the device before release, as opposed to this (proposed) half-hearted 'fix'.
It is surprising this left the door, I'll admit. However, throwing in a $29 bumper for $5 (which costs them $0.25) is an easy solution to the problem. It is a pretty stupid design flaw (in retrospect) that they should have seen coming and addressed already.
But, it isn't going to impact purchases or profitability.
The bumper case can't stop condensation.
It is surprising this left the door, I'll admit. However, throwing in a $29 bumper for $5 (which costs them $0.25) is an easy solution to the problem.
If it helps them avoid lots of returns or a class action suit, I'd think they'd be happy to give them away. Depending on where this whole thing goes, I could see them including one in the box until they can tweak the design/manufacturing. Is there room in the box?
What happens when you're in a high humidity area? Or go from a cool to warm environment?
The bumper case can't stop condensation.
Is that an actual issue? Have people reported having that problem or is that just a hypothetical?
btw, you can buy a bumper for the iPhone4 for 2 bucks here [or 3.50 with a protective film]:
http://www.sourcingmap.com/iphone4g-...-983_2036.html
That's exactly what I said earlier today. I assume they'll look at the design of the phone to see if they can improve the issue, but for the million plus units that are already manufactured, if a bumper solves the problem (and it sure sounds like it does) then they can give free bumpers to people that complain about the problem.
Again, I think they need to look at changing the design going forward, but assuming that bumpers do solve the problem I don't see why they'd be on the hook for anything beyond that.
I would hope that if a new rev of the phone happens a straight exchange of old for new could happen. Users should not be required to use the bumpers to solve the problem (if it exists for them).
If it is shown that there is a problem, then discussions of remedies will be germane.
I would hope that if a new rev of the phone happens a straight exchange of old for new could happen. Users should not be required to use the bumpers to solve the problem (if it exists for them).
You're saying if they revise it to improve this, they should take back a million phones even if a bumper solves the problem? You can hope for that, but I doubt that would ever happen. Even a "win" in a class action lawsuit would probably just result in something like an apple store coupon.
And if apple did offer an exchange for a new design for people with the problem, you know that most people would trade it in even if it was working fine for them.
I suggest everyone take a deep breath and wait until some controlled testing reveals whether this "flaw" is indeed such. It is possible that Apple is right, and that all phone signals are effected by the hand that holds it to one degree or another.
Of course Apple is right. The iPhone 4 just exhibits this problem to an extreme. Doesn't everyone understand marketing-speak?
If it helps them avoid lots of returns or a class action suit, I'd think they'd be happy to give them away. Depending on where this whole thing goes, I could see them including one in the box until they can tweak the design/manufacturing. Is there room in the box?
Is that an actual issue? Have people reported having that problem or is that just a hypothetical?
Believe it or not, manufacturers takes these things in consideration when designing their products.
1 year ago the iMacs had fogging issues behind the glass panel. If moisture can get behind that, it can certainly get behind the rubber bumper.
http://discussions.info.apple.com/me...sageID=9748968
If this isn't fixable (and I really only mean "visually" at the least) by a software update, then Apple is in a world of s**t.
Free rubber band ain't gonna bail them out.
Are we talking INSTANT dropped calls every time or do the bars just go down? I find that the bars on my 3Gs fluctuate all the time while talking, but I don't lose the call.
Of course Apple is right. The iPhone 4 just exhibits this problem to an extreme.
Exactly. Plus it seems like in the case of the iPhone it's not just the hand blocking the signal, but touching the two parts of metal at once and basically causing a short between them, which likely happens in few if any other phones.
Believe it or not, manufacturers takes these things in consideration when designing their products.
Of course they do, I never said otherwise. I asked if condensation is something that people have had happen using bumpers or just a hypothetical you came up with, which you didn't answer.
Otherwise, your warranty may not apply.
And yet, with all the screaming negativity, AAPL is only down less than 1/10 of a percent.
So much for the Apple is doomed!? crowd.
Just curious about how bad it really is. I wanted to be an early adopter, but the lines were crazy at midnight. There was no way I was going to wait that long.
Are we talking INSTANT dropped calls every time or do the bars just go down? I find that the bars on my 3Gs fluctuate all the time while talking, but I don't lose the call.
From what I've seen with data in the Speedtest app, as soon as the gap is bridged, data transfer halts. The bars seem to provide a moving average of signal strength over about the last 20 seconds, so it takes them 20 seconds to catch up. Likewise, after releasing the death grip, it takes another 20 seconds for the bars indicator to be fully restored, even though data transmission resumes immediately.