What will Apple say or do? Those questions, frequently asked by technocrats, took on a new urgency Thursday with word that the company has hastily called a Friday press conference about the iPhone 4 at its Cupertino, Calif., headquarters.
Its newest iPhone is a huge hit, with more than 1.7 million sold in the first three days, but there are continuing complaints about signal loss when the iPhone 4 is held in a certain way. The complaints reached a high point this week when Consumer Reports said the signal-strength problems are real, that it couldn’t recommend the device because of that issue, and that it was Apple’s obligation to do something about it.
Apple Knew?
There’s a small cottage industry of Apple watchers debating what Apple’s next move will be. Some, such as RBC Capital Markets analyst Mike Abramsky, say there is now a “higher probability” than previously that Apple will announce a recall or a repair. Others have said that a full recall is unlikely, given estimates that a full product recall could cost the company as much as $1.5 billion.
But some observers contend that a recall is what is needed to protect Apple’s most important asset — its brand. Other suggestions include providing a “bumper” phone case for every owner, which Consumer Reports said effectively fixes the problem. Other phone manufacturers, such as Research In Motion and HTC, commonly provide one.
Meanwhile, a new report from Bloomberg News Service indicates that Apple CEO Steve Jobs knew that the iPhone 4’s antenna design could lead to dropped calls. Bloomberg said Ruben Caballero, a senior engineer and antenna expert, warned the company’s management during the device’s early development of possible problems because of the way the antenna was designed. The news service said it received this information from “a person familiar with the matter.”…