How Much Did Apple 4 Antenna Issue Affect Potential Buying Interest?

Apple's iPhone 4 antenna issues might have cost Apple some sales. At least by one analysis, conducted by Piper Jaffray analyst Gene Munster, as much as 20 percent of potential sales might have been affected.

All of that noted, Apple still seems to be selling iPhone 4 models as fast as it can get them built. Some 80 percent of respondents said the antenna issue had no effect on their thinking.

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iPhone 4 Spoof

RIM Execs Deny Apple Test Data on Signal Fade

The Research in Motion "BlackBerry Bold" device, as tested by Apple, appears to show the same signal fade issues as the Apple iPhone 4 when held in certain ways. RIM executives deny they have a signal reception problem.

watch the demo: signal fades

"Apple's claims about RIM products appear to be deliberate attempts to distort the public's understanding of an antenna design issue and to deflect attention from Apple's difficult situation," say Mike Lazaridis and Jim Balsillie, RIM Co-CEOs. They don't specifically refute the Apple test data, though, which is odd.

They simply say "RIM is a global leader in antenna design" and say RIM "has avoided designs like the one Apple used in the iPhone 4 and instead has used innovative designs which reduce the risk for dropped calls, especially in areas of lower coverage."

Again, that doesn't specifically address the Apple test data.

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Smartphone Antenna Performance: BlackBerry, Droid Have the Same Problem?

Apple says other smartphones, such as the BlackBerry Bold and Droid Eris, have the same problem with signal attenuation when the devices are held.

Mobile phone signal attenuation happens whenever a signal is obstructed, Apple notes. The density and composition of the human hand can cause attenuation to a greater degree than some other materials.

On a mobile phone, signal loss typically occurs when your hand attenuates the most sensitive part of the antenna. Apple even has put together videos demonstrating how different grips cause attenuation on many popular smartphones, not just the iPhone 4 and iPhone 3GS.

Apple - Smartphone Antenna Performance

Free Bumpers for All iPhone 4 Buyers, Apple Says

Apple CEO Steve Jobs says the signal reception issue "affects a very-small percentage of users," Jobs says. "I have gotten 5,000 emails from users who say they never see the problem and can't figure it out."

The data suggests this (issue) has been blown out of proportion," he says.

What does Apple plan to do? IoS 4 fixed the signal strength display problem. We have bumper cases and will give one for every iPhone 4, through Sept. 30, 2010. Users who bought a bumper will get a refund. "But we can't make enough ourselves, so we'll source some other cases and give you a choice," he says.

Full refunds will be given for any iPhone 4 units returned undamaged within 30 days.

iPhone 4 Drops 1 More Call Per 100, AT&T Data Shows

"AT&T has given us call drop information and that shows call drop data and that is proprietary, but the delta from the iPhone 3GS to the iPhone 4 shows that, for every 100 calls made, call drops on the iPhone 4 does drop more calls than the 3GS," says Steve Jobs, Apple CEO. But how many more? "Less than one additional call per 100, compared to the iPhone 3GS."

iPhone 4 Return Rates A Third of iPhone 3GS, Jobs Says

The iPhone 3GS is the best-selling smartphone in history, and return rates were six percent, Jobs said. For the iPhone 4, return rates are 1.7 percent.

Apple: "We're Not Perfect;" Neither is Anybody Else

"We're not perfect," Steve Jobs said at the news conference called to talk about the iPhone 4 antenna problem. "We know that; you know that."

"And phones are not perfect either." Jobs said. Apple started getting reports about the iPhone 4 antenna
problem almost as soon as the device went on sale. But Apple says less than half of one percent of iPhone 4
buyers called to complain about the antenna. He also said the iPhone 4 is the best product Apple ever has
made. "People seem to like it; users seem to love it," he said. After three weeks, it has the highest evaluations
ever."

"We have been working our butts off for the last 22 days" to fix it, he said. "We haven't had our heads in the
sand."

"We want to find out what the real problem is before we start to come up with a real solution," he said. The
data shows that the antenna signal drop-off is not unique to the iPhone 4, but most people haven't looked at this before."

The BlackBerry Bold 9700 also has the same problem the iPhone 4 has. It is identical to the iPhone 4 in that
regard, he says. The HTC Droid Eris also loses bars when gripped. The signal goes down right away but the
algorithm might delay the signal strength indicator to show the new signal strength. The Samsung Omnia II
likewise has the problem, Jobs said.

These problems affect most smartphones in areas of weak signal strength, Jobs said. "This is life in the smartphone world; phones aren't perfect."

Rates of return for the iPhone 4 in fact are lower than for the iPhone 3GS, Jobs said.

Apple Won't Issue a Recall of iPhone 4

Nobody outside the top ranks of Apple knows precisely what the company plans to do July 16 when it addresses the iPhone 4 signal reception issue. The Wall Street Journal reports that a product recall, however, will not be among the options.


Despite the embarassement, the company doesn't need to do that. There is no safety or product defect here, and Apple engineers knew of the potential issues "as early as a year ago," the Wall Street Journal reports.

Perhaps Apple will offer free "bumpers" to buyers, which aside from protecting the phone will fix the signal fade problem. It just isn't the "crisis" that crisis management professionals insist it is.

Apple's brand will survive intact, and people will not stop buying iPhones, period.

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.

Analyst: iPhone 4 recall would cost $1.5 billion | Circuit Breaker - CNET News

Odds the iPhone 4 be Recalled

About 4:6 odds a full mechanical recall will be issued in 2010, oddsmaker says. Odds a full mechanical recall will not be issued by Apple in 2010 are 11:10.

Will the iPhone 4 be recalled? Betting from Paddy Power

PR Experts: iPhone 4 Hardware Recall Is “Inevitable”

Some now believe Apple will be forced to recall the iPhone 4 because of hardware defects related to its antenna design.

“Apple will be forced to do a recall of this product,” said Professor Matthew Seeger, an expert in crisis communication. "This is potentially devastating.”

That seems a bit of hyperbole. Every smartphone I can think of has some issues. Sure, users might have to adjust the way they hold their devices, or add a bumper. Users of other devices need to make adjustments to account for battery life, presence or absence of a keyboard, the size of their fingers and lots of other small adjustments. Some people use the speakerphone function whenever possible, or simply limit the number or length of calls to limit brain exposure to emitted radio frequency energy.

The iPhone 4 reception issue is not hazardous to health. The device does not fall apart. It is not perfect, but what device actually is "perfect" on every measure? As the Eagles song goes: "Get over it."

PR Experts: iPhone 4 Hardware Recall Is “Inevitable” | Cult of Mac

Consumer Reports Does Not Recommend the iPhone 4

Consumer Reports says it cannot recommend the iPhone 4 because of reception issues. The consumer testing group says its findings are not based on the inaccurate signal reception display, but actual reception issues caused when the device is held in certain ways.

"When your finger or hand touches a spot on the phone's lower left side—an easy thing, especially for lefties—the signal can significantly degrade enough to cause you to lose your connection altogether if you're in an area with a weak signal.

Consumer Reports Electronics Blog: Lab tests: Why Consumer Reports can't recommend the iPhone 4

Apple on iPhone 4 Reception Issues

Apple says the signal strength indicator on its iPhone 4 is displaying incorrect results. "Upon investigation, we were stunned to find that the formula we use to calculate how many bars of signal strength to display is totally wrong," Apple says. "Our formula, in many instances, mistakenly displays 2 more bars than it should for a given signal strength."

In areas of weak signal, the "big drop in bars" when the device is gripped is "because their high bars were never real in the first place."

Letter from Apple Regarding iPhone 4

Is Apple an Annuity Business?

Is Apple in the annuity business? You might draw that conclusion from the results of a survey of Apple iPhone 4 buyers, given that 77 percent already were iPhone uses, and 84 percent already were on the AT&T network. The caveat is that anybody buying a new device on the first couple of days is a "fan," almost by definition.

77% of iPhone 4 Buyers Are Upgrading from Earlier Models

A survey by Piper Jaffray suggests that most early iPhone 4 buyers were upgrading from previous iPhones and that very few were switching to AT&T from other carriers. About 77 percent of iPhone 4 buyers polled in three cities (San Francisco, New York, and Minneapolis) were upgrading from old iPhones.

That's up from 56 percent last year and 38 percent in 2008, and represents brand loyalty that is likely unmatched in the mobile industry.

About 16 percent of buyers were switching to AT&T from other carriers, down from 28 percent last year.

Some 54 percent purchased the $299 32 GB model, up from 43 percent who bought the 32 GB iPhone 3GS last year.

About 28 percent of iPhone 4 buyers owned an iPad, which confirms that the people waiting in line were the most serious of the Apple fanatics. Of the 72 percent who did not own an iPad, 39 percent said they would probably buy one within the next year, while 61 percent said they would not.

About 65 percent were Mac owners, down from 75 percent at the first iPhone launch in 2007.

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iPhone 4 Reception Issues: Use a Bumper

 One of the solutions to the iPhone 4 signal reception issue is to use a rubber bumper, which was designed to protect the phone from physical damage but also keeps skin from touching the antenna, which is the cause of the signal reception problem.

Apparently the left side of the iPhone 4 receives Wi-Fi signals while the right side picks up the 3G signal for calls. And human tissue blocks reception of radio waves. Holding the device, when the antenna is on the exterior of the device, also means the antenna's physical length is affected. That's important because antenna length is proportional to the wavelength of the signals a device is trying to capture.

What seems like long ago, when people used TV antennae on their roofs to pick up broadcast TV, the antenna array was fairly large: feet worth of antennae. That was because the broadcast TV signals had a fairly long wavelength, so one needed a fairly-long antenna to catch the signals.

Cell phone signals are higher frequency, with shorter wavelength, so antennae are correspondingly shorter, measured in inches. But touching the antenna can effectively shorten its length, thus affecting reception, aside from the absorption of some of the signal.

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iPhone 4 Reception Problems? Stop Holding It The Wrong Way, Apple Says

Apple has acknowledged and responded to the reception problems people are having with their new iPhone 4, which seem to happen based on the way the phone is being held.

The advice? Stop holding the phone the wrong way.

Apple sent Engadget the following statement: "Gripping any mobile phone will result in some attenuation of its antenna performance, with certain places being worse than others depending on the placement of the antennas. This is a fact of life for every wireless phone. If you ever experience this on your iPhone 4, avoid gripping it in the lower left corner in a way that covers both sides of the black strip in the metal band, or simply use one of many available cases."

Steve Jobs Responds To iPhone 4 Reception Problems: Stop Holding It The Wrong Way!

Vote: Do You Have Signal Strength Issues on Your iPhone 4?

http://polldaddy.com/poll/3387884/

And don't forget to try it using both hands, left and right. You should get different results.

Is the Apple 4 Steel Band Antenna the Problem, or Something Else?

Users are reporting problems with signal reception when the Apple iPhone 4 is held in the left hand, as opposed to the right. But the earlier iPhone 3 also had reception issues, leading one to wonder whether it is a physical issue or a software issue.

It is starting to appear as though every new smartphone has some issues, despite the strengths. HTC Evo users will tell you that despite the bigger battery and beautiful screen, battery life is poor. Poor as in, if you do a lot of web operations, you might have to charge it more than once a day. Of course, iPhone 3 users probably would agree that heavy web use kills battery life as well.