The most influential segment of the media is starting to take notice. If you want Apple to react you need to complain not with Applecare but with the WSJ, FT, Bloomberg, NYT, CNBC, Fox Business, because they can have an impact on the only things that Apple cares about: its reputation, its bottom line and its stock price.
WSJ(6/29) Heard On The St: The Curious Case Of The Iphone 4
(From THE WALL STREET JOURNAL)
By Martin Peers
If the iPhone 4 has become "the most successful product launch in Apple's history," as the company says, one wouldn't want to imagine the worst.
Apple's statement overlooked the fact that its fourth-generation phone has an antenna design that requires consumers either to buy a case or learn to hold the phone in a particular way to ensure reception. Usually the idea is to produce phones that get clearly better, not worse, with each new version.
So far at least, Apple's cult-like fan base seems willing to give the company the benefit of the doubt. Apple said Monday the product had sold a remarkable 1.7 million units in the first three days.
Investors shouldn't take too much comfort, however. A lot of those sales likely came from preorders placed before reports of the antenna weakness circulated. What's more, many of the initial sales also were likely upgrades by existing iPhone owners. These people already have shown themselves willing to put up with reception problems -- although in the past they could blame AT&T's clogged network.
The real question has to be whether concerns about the antenna, combined with carrier congestion issues, will slow uptake of the iPhone among customers not yet converted to Apple worship. Not only are they likely to be less patient with any product failings, they can now choose from an ever-widening array of alternative smartphones.
This should be a concern for investors, as the iPhone accounted for 40% of Apple's second-quarter sales and is a key driver of growth. Apple may well solve the antenna problems. But how many product stumbles can it survive before its halo starts to slip?
WSJ(6/29) Heard On The St: The Curious Case Of The Iphone 4
(From THE WALL STREET JOURNAL)
By Martin Peers
If the iPhone 4 has become "the most successful product launch in Apple's history," as the company says, one wouldn't want to imagine the worst.
Apple's statement overlooked the fact that its fourth-generation phone has an antenna design that requires consumers either to buy a case or learn to hold the phone in a particular way to ensure reception. Usually the idea is to produce phones that get clearly better, not worse, with each new version.
So far at least, Apple's cult-like fan base seems willing to give the company the benefit of the doubt. Apple said Monday the product had sold a remarkable 1.7 million units in the first three days.
Investors shouldn't take too much comfort, however. A lot of those sales likely came from preorders placed before reports of the antenna weakness circulated. What's more, many of the initial sales also were likely upgrades by existing iPhone owners. These people already have shown themselves willing to put up with reception problems -- although in the past they could blame AT&T's clogged network.
The real question has to be whether concerns about the antenna, combined with carrier congestion issues, will slow uptake of the iPhone among customers not yet converted to Apple worship. Not only are they likely to be less patient with any product failings, they can now choose from an ever-widening array of alternative smartphones.
This should be a concern for investors, as the iPhone accounted for 40% of Apple's second-quarter sales and is a key driver of growth. Apple may well solve the antenna problems. But how many product stumbles can it survive before its halo starts to slip?
