There has been an impending or a possible recall all of Apple’s sold iPhone 4. This is due to the heightened issue regarding the defect of its latest gadget’s antenna. Consumer Reports, an American magazine which publishes reviews and comparisons of consumer products and services based on reporting and results from its in-house testing laboratory, has released an article just recently that they won’t recommending Apple’s iPhone 4 due to it’s antenna defect. There has been reports from those who got the iPhone 4 already that if a finger would be placed on the bottom left of the phone, the signal would be reduced or even cause the call to drop entirely.
Sanford C. Bernstein & Co analyst Toni Sacconaghi said a full product recall of the iPhone 4 would represent the equivalent of about 5 weeks of free cash flow or about 3.5% of its total cash balance and it would sum up to $1.5 billion. If Apple will not pursue the recall, their integrity and name would be compromised.
“While logical arguments can be made that suggest that iPhone momentum remains strong and the antenna issue can be “solved” with a rubber case, the press appears to be increasingly crying foul at Apple, which suggests that Apple’s image – and potentially iPhone sales – could be compromised if Apple does not explicitly – and constructively – address the issue of what it believes is wrong with the phone and how it will address it,” Sacconaghi wrote. -cbsnews
Apple is blaming the problem initially to a miscalculation within the formula which is used to determine how many signal bars should be displayed and it is basically an optical illusion. Consumer Reports as well as other analysts would not buy this reason. In fact, Larry Barton, Former Vice President of Crisis Management of Motorola just told Cult of Mac that Apples response has been “Lackluster’.
