Apple Calls Press Conference on iPhone 4 Issue


Apple will host a press conference to discuss the iPhone 4, said a company representative. The meeting will take place at the company's Cupertino campus at 10 a.m. Pacific time on Friday. Though no further details were provided, we assume that the conference will address concerns that the iPhone 4's antenna design causes increased dropped calls, and whether or not Apple will take action to remedy the issue.

It's been the hottest discussion all week, though in many ways, the drama has outweighed the reality. Analysts and pundits alike have speculated on what, if anything, Apple's "fix" might entail; these range from absolutely nothing, to distributing free rubber bumpers, to ordering a full blown Toyota-style recall. Though "highly unlikely," Bernstein & Co. analyst Toni Sacconaghi said such a recall could cost $1.5 billion.

The bumper fix is more likely, as it could be managed via Apple Stores, and could be seen as a goodwill gesture, a way for Apple to save face. (Consumer Reports today said that the bumper does indeed "alleviate" the problem.) Analyst firm Piper Jaffray said that the bumper fix may cost $178.5 million — about a day's earnings for Apple.

This wouldn't be the first time Apple caved to public criticism. Three years ago, Apple caught heat for reducing the price of the original iPhone from $600 to $400 only a few months after its initial launch. To save face, Apple issued $100 Apple Store credits to those who paid the high initial price.

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