Apple to address iPhone complaints.
Well informed sources reported Thursday that Apple officials will call a Friday press conference, probably to discuss its answer to customers’ repeated complaints about the new iPhone 4’s antenna design. Several well-informed sources claimed that Apple would not recall iPhones, because they want to preserve their reputation for quality and durability. The glitch, originally attributed to a minor software coding error, puts a major blotch on the company’s previously unblemished reputation. While most users describe the tiny design flaw as “mostly an inconvenience,” Apple insiders say that it troubles company officials who wish to maintain “a culture devoted to product perfection.”
Some inside sources have reported that, very early in the product’s development, iPhone 4 engineers expressed concern about the handheld’s antenna design, saying it would impede reception just as recent experience has shown. According to insiders, designers over-ruled concerned engineers, keeping the original design for the sake of keeping the phone unusually slim and sleek. One source said the Cupertino techies will introduce a specially designed guard for the antenna, protecting it against what has come to be known as the ‘iPhone death grip.”
Consumers’ complaints have triggered skittishness in the investment community, and Apple shares have lost $6 billion(usd) in the last week’s trading—a very bad sign on the eve of the company’s earnings report. Comparing recall costs with quick-fix costs, analysts calculate that antenna guards will cost the company about $2 million(usd) or about five cents per share; a recall, on the other hand, may cost as much as $300 million(usd). Investors fervently hope the quick-fix works—not only to make the phone functional but also to maintain customers’ fierce loyalty.
In the past, Apple has shown no reluctance about responding to customers’ complaints for the sake of keeping their loyalty. When the first iPhones debuted at more than $500(usd) and sales were not all the marketers wished, the company reduced prices to $399(usd). Buyers of the higher-priced units naturally complained, and the company quickly sent them $100(usd) gift cards and other perquisites.
