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There may be "red herrings" or whatever you want to call it. But to folks like myself who are still waiting to buy an iP4, it makes us step back and ask if there isn't something to all the media reports.

As a longtime customer I trusted Apple and pre-ordered a phone. Now I'm sorry I did.*

The antenna problem on mine is very real. It's so bad that even after I paid for the woefully overpriced "bumper" from Apple, mine still suffers from poor reception. Now before the fanboys blame it on AT&T, let me state the facts. I use two phones on AT&T, my work issued BlackBerry and my personal iPhone 4. The 3G BlackBerry displays stellar call quality, the iPhone 4 does not. Previously my iPhone 3Gs was also weak when it came to calls. So when Steve Jobs himself made a big point of telling us how great the new antenna was, during his keynote address, I believed him. That is a mistake I will never repeat.*

I'm taking a wait and see approach at this point. How Steve Jobs handles this, will be a make or break decision for many of us.*
 
Apple's dominance, and apple's ability to sell 1.7 million iPhones is staggering to the mind. That being the case, people expect apple to have a certain level of design and quality. Apple highly promoted and marketed the newly designed antenna as a huge improvement over the old design.

No matter how much people discount WSJ, or the internet chatter the fact remains that if people hold the phone in their left hand, the signal is decreased significantly.

Other companies produced products with design flaws, the ones that fared better were those that stepped up to the plate and admitted the issue and worked to resolve it. Apple's current stance that its not a problem and all phones suffer from this really doesn't cut the mustard. People expect more from a market leader, and if apple wants to be a leader in this sector, then they must bear the responsibility when things don't go quite right.

Regards
Mike

Best post in this thread.

+1

People expect better from a company that touts themselves as being different and better. It's what makes Apple - Apple.

I love my iPhone 4. I loved it so much, I bought another knowing full well of the current issue. Why? It's the best phone out there. 1.7 million people and counting can't be wrong. However, I do expect things to work. :) Especially the PHONE part of the iPhone. Lol.

Hopefully they will fix it. If not, I will think long and hard next year.
 
To be truthful, it took time for MS to come out w/ the warranty extension and admit they had engineered a sub-par game system. Apple has had less than a week to get its arms around this problem.

Lets see what they do about it first before we hang them on it.

There's a clear difference.

The problem with the Xbox 360 (cut down to be relevant enough to this discussion) was as follows:

The GPU was located under the DVD drive. The GPU got very hot when the console was being used, and because the DVD drive restricted the airflow getting to the console, the area of the motherboard around the GPU got very hot as well. This resulted in the components expanding/contracting more frequently than you'd expect, which over time made the GPU's connection to the motherboard fail. Microsoft's later hardware revisions focused on making the GPU output less heat, and to pump that heat away from the GPU as much as possible.

The problem with the iPhone 4:

When you hold it with one of two hands that people have, in a position that Apple uses in its own marketing materials, you are very likely to notice a complete drop in the level of cellular signal that the phone receives.

Microsoft's problem was big, but it's not something that a five year old could have noticed just by holding the product.
 
Oh, and I'll be canceling my WSJ subscription.

You are going to cancel your subscription because they published a piece against Apple?

Granted the article was snarky and biased, but this is an issue whether its blown out of proportion or not.
 
Microsoft NEVER issued a recall. They extended the warranty to 3 years for the RRoD problem. YOU must have selective memory just for the sake of an argument.

For the reasons I put in my above post, a recall was not necessary.

It's not a problem that will affect every single Xbox 360 user.

It's something that can happen over time, but if it doesn't happen in the three year warranty period then you've really not experienced the problem.
 
If my Xbox 360 gets the three red lights of death, I can call Microsoft on a toll free number (or do it online), get free shipping both ways and get a replacement console within a week - and I bought the product in 2007.

With my iPhone, I'd have to use a landline to place the call, only to be told a lie by Applecare.

I always buy AppleCare, and used to be a big advocate. However I too, have had them lie to me in the past year, on more than one occasion. This is a disturbing trend. One that has caused me to step back & take a second look at what's happening with Apple. While they ride a wild wave of success, who are they duping in the process?
 
For the benefit of non wsj subscribers (and I assume steviejobz does not actually subscribe.. or at least doesn't ever read wsj) this was from "Heard on the street" which means it is buried on the back page of the money & investing section where many people never read. Heard on the street is basically investing gossip/opinion. So i wouldn't exactly say that this story has hit mainstream press... it hit the gossip column
 
I'm taking a wait and see approach at this point. How Steve Jobs handles this, will be a make or break decision for many of us.*

It looks as if a lot of people are taking the same "wait and see" approach and are giving Apple the benefit of the doubt. However, I suspect that until people become more vocal and start returning their iPhones, no resolution from Apple will be forthcoming, as the company will assume that all is well and that therefore it may get away with this mistake.
 
DJ TECH VIEW: Apple Can No Longer Afford Clumsy Launches

DJ TECH VIEW: Apple Can No Longer Afford Clumsy Launches

By Therese Poletti
A DOW JONES COLUMN

Apple Inc. (AAPL) may be able to line up customers around the block, but even the iconic technology company can no longer afford clumsy product launches in the hotly competitive smartphone field.

Since Apple reshaped the smartphone business in June of 2007 with its first iPhone, there are now a host of other competitors gunning for a share of the fast-growing market. Most notable among these is Google Inc. (GOOG), the Web search giant that has bankrolled the creation of a rival mobile operating system that supports a host of devices. It is proving a popular alternative for consumers looking for high-end wireless devices.

Many of these rivals are probably chomping at the bit to take Apple down a notch for its rather flawed introduction of its latest gizmo, the iPhone 4.
While fans lined up last week for blocks to buy the iPhone 4 and Wall Street analysts were pounding the table over potential sales, some consumers were quickly venting about a problem with the new smartphone's reception. Demonstration videos on YouTube popped up. Consumers complained in tweets about losing reception if they held the phone in a certain way.
Apple's initial response, telling consumers how to hold the mobile device, was, to put it mildly, lame.

Chief Executive Steve Jobs responded to one consumer complaint in an email, saying, "Just avoid holding it in that way," he wrote, according to Engadget, a popular technology blog.

"Gripping any mobile phone will result in some attenuation of its antenna performance, with certain places being worse than others depending on the placement of the antennas," Apple said in a statement. "This is a fact of life for every wireless phone."

On Monday, Apple touted the fact that it has sold 1.7 million units of the device in its first three days on the market. The company is also reportedly working on a software update to fix the issue with the iPhone 4, similar to what it did for its iPhone 3G two years ago, when poor battery life and other technical issues plagued early adopters.

But such missteps may prove to be more costly now. Unlike two years ago, the iPhone is no longer the only compelling, touch-screen, Web-friendly smartphone available. Products like the Droid from Motorola Inc. (MOT) and the Incredible from HTC Corp. (HTCXF, 2498.TW) are racking up big sales numbers. An updated version of the Droid goes on sale next month, and Samsung Electronics Co. (SSNHY, 005930.SE) has lifted the wraps on an ambitious line of smart phones called the Galaxy family that are generating strong buzz in the market.

Even Research In Motion Ltd. (RIMM, RIM.T), which took a beating last week on concerns about slowing demand for its BlackBerry line of devices, is slated to introduce a line of new devices over the next few months, along with a major overhaul of its own operating system and mobile Web browser.

Combine that with the continuous network problems with Apple's only carrier in the U.S., the overburdened AT&T Inc. (T), and consumers are now starting to realize that Apple is no longer the only game in town. AT&T's arch-rival Verizon (VZ) is spending heavily to promote Google's Android operating system and devices built for the platform, and that carrier enjoys a far better
reputation for service and coverage than the resurrected Ma Bell.

Recent market research data shows that phones designed around Android are starting to gain ground. Gartner Inc. said last month that in the first quarter, sales of smart phones based on Android surpassed iPhone for the first time in the U.S.

Most analysts, for now, don't believe the iPhone 4 antenna issue is going to be a big deal or hurt sales. But Shaw Wu, an analyst with Kaufman Brothers, said he was getting a lot of questions from investors about the iPhone 4's reception. "We don't think the antenna issue is that big of a deal where it would warrant a product recall," Wu wrote in a note on Friday.

The fact that an analyst even mentioned the word "recall" in a note about an Apple product has got to have both investors and consumers a bit nervous. In fact, Apple's shares barely budged upward on Monday on news about record iPhone 4 shipments.

Apple should not be resting on its laurels, nor can it afford to bungle new product launches with half-baked responses. Consumers now have plenty of other options in smart phones, and with better networks to choose from.
(Therese Poletti is a special writer for MarketWatch. She can be reached at 415-439-6400 or by email at AskNewswires@dowjones.com.)

(END) Dow Jones Newswires

June 29, 2010 08:14 ET (12:14 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.
 
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?

Product stumbles? What is this guy smoking?
 
Share price has dropped 7 this morning.

That's pretty remarkable for a company that just sold 1.7 million units of its flagship device...

edit: correction - now down 8.63. Surely they need to make a statement?
 
Share price has dropped 7 this morning.

That's pretty remarkable for a company that just sold 1.7 million units of its flagship device...

edit: correction - now down 8.63. Surely they need to make a statement?

edit2: down 10! It's plummeting...

Being realistic, isn't the market down in general today?

Even if the price did go down a tiny bit because of this issue we'd never know.
 
1.7 million people and counting can't be wrong.

Unfortunately, they can, and many are finding out they are/were/remain that way for buying into Apple's Cult. It's one thing to just volunteer yourself into something, it's another thing entirely to pay for the privilege... ;)

We're talking about consumers, after all.
 
Share price has dropped 7 this morning.

That's pretty remarkable for a company that just sold 1.7 million units of its flagship device...

edit: correction - now down 8.63. Surely they need to make a statement?

That would be something except the entire market is heading south, so apple's stock price is being affected by market forces not bad iphone reception.
 
tis, but that's well above the average drop.

it's actually recovered a little from the 10 drop, hence my edit above.
 
That would be something except the entire market is heading south, so apple's stock price is being affected by market forces not bad iphone reception.

Wow, a nice double entendre there, well done since the iPhone just came out (even if you didn't mean it or have any clue what I'm talkin' about...) :D
 
Share price has dropped 7 this morning.

That's pretty remarkable for a company that just sold 1.7 million units of its flagship device...

edit: correction - now down 8.63. Surely they need to make a statement?

AAPL down $10.40 or -3.40% vs 57 or -3.1% for the Nasdaq 100. AAPL's fall is more or less in line with the market, considering AAPL's beta.

The iPhone design flaw screw-up is not being factored in yet. When it is and all the funds that are heavily overweighted AAPL in their portfolios start heading for the exits, you'll see the stock plunge another $30 in no time.
 
Wow. Never more disappointed in the WSJ. They have become really desperate for attention lately. Last week they erroneously reported a takeover of Hasbro causing an incredible amount of volatility that impacted me financially. And now this nonsense. Talking about a product slip-up just a few days after launch that only meaningfully impacts a subset of users.

As for the 1.7M being ordered before these announcements, there are still huge waiting lists at Apple stores and lines at AT&T starting tomorrow. Points the author fails to mention. Also, who is to say that Apple won't fix the issue?

Way too premature for such conclusion leaping.

Oh, and I'll be canceling my WSJ subscription.

Don't really see what the problem is with what they wrote. This is a legitimate issue for investors (as well as us end users).
 
AAPL down $10.40 or -3.40% vs 57 or -3.1% for the Nasdaq 100. AAPL's fall is more or less in line with the market, considering AAPL's beta.

The iPhone design flaw screw-up is not being factored in yet. When it is and all the funds that are way overweight AAPL in their portfolio start heading for the exits, you'll see the stock plunge another $30 in no time.

I'll take your word for it...
 
Wow, a nice double entendre there, well done since the iPhone just came out (even if you didn't mean it or have any clue what I'm talkin' about...) :D

I kind of missed (and still am) the double entrendre there. I guess I'm a bit clueless. :eek:
 
Consumer Confidence in U.S. Fell More Than Forecast in June

With the Conference Board’s confidence index slumping to 52.9 this month from a revised 62.7 in May, Apple has sold more iPhones and iPads than it ever will. After all there are only so many mortgage-defaulting deadbeats willing to buy the latest gadgets. Add to that the hardware design screw-up, and I bet AAPL will be trading at $200 within a week.

http://noir.bloomberg.com/apps/news?pid=20601087&sid=aeK4Ce5VmDBE&pos=1
 
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