Apple iPhone 4 recall vs. loss in shares

By Peter Chubb - Jul 13, 2010

Earlier we reported that since the Consumer Reports offering its opinion on the Apple iPhone 4 – shares have fallen by 4.2 percent. We now wonder if a decision on a recall would help to stem unease with investors? Apple does not have long to think, but they need to do something.

A recall could be very damaging for Apple, but just sitting around and telling us that we are holding the fourth-generation iPhone wrong is not going to make the antenna issue go away. Erica Ogg from Cnet News has been talking to analyst Toni Sacconaghi, where it as expected that this recall could cost Apple 3.5 percent of its total value or $1.5 billion.

However, it seems to be agreed by a number of analysts that a recall would not happen and that a cheaper solution would be found. One such solution would be to offer a free Bumper with each handset – this would be a much cheaper option as the Bumper is rumoured to cost Apple just $1.

Although this would be the option that would cost Apple the least amount of money, I still cannot help but think that we still have a faulty device, and we need a $1 product to help solve the issue.

Ogg worries that the problem with the antenna on the iPhone 4 is not thing damaging Apple the most – it is their response. They have yet to offer a solution to the problem – instead telling us that we should hold it different. Apple does not have long; consumer confidence will start to take hold soon, and could see more that 4.2 percent wiped of their total value.

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