Wednesday, July 14, 2010

iPhone 4 recall would cost $1.5 billion

A full product recall of the iPhone 4, though highly unlikely, would cost Apple $1.5 billion, or 3.5 percent of its total cash on hand, says Bernstein Research analyst Toni Sacconaghi.

Apple could issue a free rubber bumper case with each phone. Although Apple charges $29 at retail for the rubber cases, Bernstein estimates that giving them away to iPhone 4 customers would cost the company $1 per unit.

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