Estimate: Full recall could cost $1.5B
The possible, yet highly unlikely event of a full iPhone 4 recall would cost Apple dearly, according to Tony Sacconaghi of Bernstein Research. He has issued a report with a US$1.5 billion price tag as his best guess. However, that's not what Sacconaghi believes will happen. Instead, he suspects Apple will relent and issue free Bumper cases to those who want them. With an estimated production cost of $1 each, the cost would drop significantly and frankly hardly disrupt Apple financially.
Earlier this week, several people suggested that a recall is inevitable, while others insist that it's not really a big deal. As I said yesterday, whatever Apple's going to do ought to be done sooner than later. While Apple is silent, consumers are seeing stories like this.
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The possible, yet highly unlikely event of a full iPhone 4 recall would cost Apple dearly, according to Tony Sacconaghi of Bernstein...
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@ilkyone - the Steve Jobs' "you're holding it wrong" email was confirmed by Apple as being genuine.
@Jordan - i agree that SJ was out of line by that response. if you've noticed, he hasn't publicly returned any emails since. if he hadn't sent that email, than there wouldn't be such a PR backlash as there is now.
Apple made it therefore it should work perfectly...it's a nice promise and apple should always attempt to produce the best product they can at all levels, but sometimes, people just need to get over themselves and accept sometimes, things don't always go as planned.
Yes apple should fix this issue, it is apparent that it is a design flaw, but if any other maker had done this, it would have ended weeks ago and noone would have cared...see microsoft for example...
My question would be if they do a recall would that cancel your new two year contract with AT&T. I know that a good number of people sold or otherwise parted with there previous phone when they picked up this phone. They should have to give you a fully functional replacement phone or refund your money and terminate your AT&T contract at no cost to the customer. Offering a different AT&T phone is not an expectable compromise. Even though it would be very interesting if this recall not only gave several million mad users a way to change carriers but also served as a way give there direct competition access to all their angry users. I love my new iPhone but I do still get the prox sensor issue from time to time and there have been other issues that can give people a reason to evaluate there love of the hardware. Especially after this PR nightmare that Apple has provided us. I must say the the droid phones with the chrome integration are looking like a good alternative. This whole your holding your phone wrong has burned some bridges. I think some fan boys and girls might start evaluate the situation.
July 14 2010 at 9:17 PM Report abuse Permalink rate up rate down ReplyNever, ever happen. Period. End of story.
-30-
All these stories are bugging me. I have yet to have a problem with my iPhone 4. I would be the first in line again to get one again.
July 14 2010 at 5:23 PM Report abuse Permalink rate up rate down ReplyiPhone 4 has several radios, not only for mobile networks. Why haven't anyone reported on problems with Wi-Fi, GPS, and BT which also use the same frame antennas. To me it's strange that only one of the radios is affected.
July 14 2010 at 2:13 PM Report abuse Permalink rate up rate down ReplyPeople need to read this:
http://mobileanalyst.wordpress.com/2010/07/12/iphone-4-report-consumer-reports-study-is-full-of-crap/
This is getting really stupid. A recall won't cost $1.5 billion because a recall isn't necessary. Why in the hell can't we just let Apple address the problem? Don't we want their final solution to this alleged problem to be the right one? The people who want a recall don't understand anything about how cell phones work. I have had ZERO problems, and no one that I know who has an iPhone 4 has had any problems. My reception has improved. I just made a call with only one bar. It was crystal clear.
July 14 2010 at 1:03 PM Report abuse Permalink rate up rate down Reply"The problem is Apple has publicly stated that a fix is coming. A vast majority of these consumers hear that, and then they don't return the phone because they think a fix is coming. Their return window is getting smaller every day, yet we have no fix." - spot on!
I don't want a bumper just the iPhone 4 as I bought it - remember Steve touting how innovative the antenna design was⦠FAIL!
This is a degradation of service for a great phone and company on an epic level.
As my dad used to say "Get your s*** together"⦠and do whats right.
Everyone is getting so serious with all these iPhone 4 atenna stories that I decided it was time for a little levity ... http://tonysmill.com/2010/07/14/death-grip-a-short-story/
July 14 2010 at 11:16 AM Report abuse Permalink rate up rate down ReplyHot Apps on TUAW
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