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Analyst: Apple's Bumper case program a win-win for customers and shareholders

Analyst Shaw Wu with Kaufman Bros. says that, while Apple is likely taking a hit by giving away free cases and bumpers to iPhone 4 buyers (and the company is even extending the offer after the deadline to anyone who calls AppleCare), the program will likely be a win in the long run. Obviously, customers appreciate getting a free case (and a "fix" for the "antennagate" issue), but Wu says that even shareholders will benefit. Apple has set aside $175 million for the case program, which sounds like a lot, but it's a drop in Apple's $45.8 billion cash bucket, and a fix for the issue may eventually add as much as 45 cents to Apple's share price this year. In other words, the free cases are money well spent, according to Wu.

So, it looks like Apple got out of its reception issue cheap. Doesn't hurt, says Wu, that it wasn't a huge issue in the first place; supposedly, not many users actually had the reception issue that got such press, but I'm not entirely sure that's true. Since I bought my iPhone 4, I have experienced the antenna problem multiple times. But because voice calls are such a small part of the experience for me (most of what I do on the iPhone 4 is with apps and messaging), it hasn't really hurt my enjoyment of the device overall. And I'm guessing that's where most customers lie -- the antenna problem is an issue for them, but not necessarily a deal-breaker.

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Analyst Shaw Wu with Kaufman Bros. says that, while Apple is likely taking a hit by giving away free cases and bumpers to iPhone 4 buyers...
 

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pilotmike60

I have had my iphone 4 for a month now and I can not make it get worse reception no matter what I do or how I hold it with or without a case. Not one dropped call or reception problem. Of the 5 people in my family that have the iphone4 none have had the problem and they have all had theirs since it was released.

September 15 2010 at 9:55 AM Report abuse rate up rate down Reply
Victor

pretty sure the only people that had reception issues with the phone were android users...

September 15 2010 at 1:28 AM Report abuse rate up rate down Reply
SierraHotel

I've had the iPhone 4 for two months. Not a single dropped call, no proximity issues (can't say the same for my 3G). IMHO "Antennagate" was/is a tempest in a teapot. The apparently very low return rate demonstrates to me that it was a lot of sound and fury with little substance for the vast majority of users.

I believe that this issue with any other phone manufacturer would have amounted to nothing, but Apple is now the "big dog"... and the rules are different. Any hiccup, any flaw... will be pounced on by link baiting writers and hardwired Apple haters. That's just life in the big city...

September 14 2010 at 6:47 PM Report abuse rate up rate down Reply
Pyrofallout

I have to agree with others. I now have 3 cases for my iPhone 4. 1 bumper, free PixelSkin from Apple and free case from Squaretrade. The Apple bumper is by far and again the best. It fits so perfectly and all the ports are cut just right. My only complaint would be it only works with Apple dock cables, many other cable simply won't fit in with the bumper. But not really a big deal cause almost all my cables are actual Apple cables.

September 14 2010 at 6:36 PM Report abuse rate up rate down Reply
urth

...again...
I bought a robot wife, but she had Gonnorrhea, Apple said just don't touch her there, but if you do here's a free rubber, no fix , no refund.

September 14 2010 at 4:54 PM Report abuse rate up rate down Reply
1 reply to urth's comment
Tim

I almost laughed out loud, but still that is pretty funny.

September 14 2010 at 6:05 PM Report abuse rate up rate down Reply
coldmedina

I noticed the picture contains all white iphone 4s. Why hasn't there been an update on when we can expect to get one. I promised one to my fiancee and it's making me look bad :)

September 14 2010 at 4:49 PM Report abuse rate up rate down Reply
Peteo

I have a problem with this whole antenna gate thing.
I hate how apple is saying most people don't have an issue..
The fact of the matter is when the iPhone 4 is put in a certain place, and held a certain way (the way most people hold it) ALL iPhone 4's will experience signal drop. Its a fact. Its not like only a few iPhones 4 are "defective", ALL of them are. Now for me its not a big deal. I mostly use data on my iPhone and do not call allot. So to me its not a problem. but for Apple to imply that each individual iPhone 4 is different is just plan dishonest. The real difference here is the users. I think apple should continue to provide cases until they actually do something to the phone to fix the issue.

September 14 2010 at 3:17 PM Report abuse rate up rate down Reply
Frank

Just finally made the leap to the 4 this week, was waiting until closer to the Sept 30th date just in "case" Apple learned more about the issue and came up with other fixes. I am extremely pleased. One thing I think people fail to mention. The reception (if you evaluate it separately from the issues demonstrated during antennagate, that I _am_ able to duplicate) is greatly improved. For me this was a big plus, I can now take calls in my basement where I couldn't with my 3G.

BTW, the same antennagate issues existed on my 3G, albeit they were more difficult to reproduce, you had to basically muffle the antenna on the bottom of the phone with your entire palm.

This improved reception (when accounting for the antenna placement) along with the improvements in voice quality, image quality, and processor responsiveness, make this a very welcome upgrade.

As for future fixes, I'm wondering if Apple can simply "move" the sensitive antenna area to the gap that exists on the top of the phone near the headset jack, if a coating or something similar doesn't do the trick. That would seem to be a much less likely spot for people to violate during normal usage and it would be a lot like the days of the nubby protruding antennas on the dumb phones. I'd hate to seem them back away from the current iPhone 4 form factor.

September 14 2010 at 3:13 PM Report abuse rate up rate down Reply
davjaxn

My iPhone does not have the antenna issue anywhere I go. Austin, LA, San Diego... Weird.

Hopefully the end of this program means I may be able to get an orange bumper! It is so weird how a little colored piece of plastic is so difficult to get.

September 14 2010 at 2:47 PM Report abuse rate up rate down Reply
1 reply to davjaxn's comment
wvuquentin

Mind a slightly used one? I ordered mine from the get go and the color was just a little too loud for me, so I got a black one in the free bumper giveaway. I'd be willing to part with it for a few bucks. My e-mail is q u e n t i n . b e r g via google mail.

I'd just like to go on record that I love my bumper. The fit and finish is perfect. It keeps the glass off rough surfaces and my iphone, with 2 months use and no screen protectors, looks flawless.

September 14 2010 at 3:13 PM Report abuse rate up rate down Reply
Greg

I never had the antenna issue, and neither did anyone I talked to who owned an iPhone 4.
A few did have the issue with the proximity sensor, which seems like the real issue to me.

The problem is, everyone knows what "reception" is, so news companies got more interest if they claimed there was an issue with that. Not everyone would click a story about a "proximity sensor" if they didn't know what it was.

Thus, one "problem" is blown out or proportion, while another one is ignored.

For the record, I never had an issue with either.

September 14 2010 at 2:29 PM Report abuse rate up rate down Reply
2 replies to Greg's comment
Brett

I have problems with the antenna, but not the sensor; my wife has problems with the sensor but not the antenna. If we switch phones the problems remain with the person, not the phone. (Maybe we're each holding it wrong.)

Either way, both problems are definitely "real" and both problems have been addressed, whether 'satisfactory' or not. Reception issues got the free cases, sensor issues got a supposed update. Apple works to correct all the problems that are widespread enough to warrant correction - they want to sell more products so they need happy customers.

September 14 2010 at 2:43 PM Report abuse rate up rate down Reply
TheCastro

I got theree iphone 4s for my family. My sister and I both had the proximity sensor issue, it's gone away for me with the upgrade, but all three of our phones had the ant issue, but it never dropped a call, people would just miss words I was saying.

September 14 2010 at 3:40 PM Report abuse rate up rate down Reply
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