The recent poor review from Consumer Reports for the iPhone has had a very bad affect on Apple shares, with $9.9bn being wiped from the company. Apple’s stock did recover a little, but certainly shows that they need to do something fast about the antenna issue before things get worse.
Normally Consumer Reports gives their blessing to an iPhone, but the current issue where owners lose signal when placing their hand over the external antenna is seen as a major design fault. The thing that iPhone 4 owners are more annoyed with is the arrogance of Apple and how they do not seem to be doing anything about it.
The strange thing is, this problem has not stopped sales of the iPhone, but investors must be worried about an imminent recall. However, Apple has refused any details on what they plan to do. We had assumed that it was going to be fixed with a firmware update, but Apple said that it was not a software issue but hardware.
The only other logical step is to issue an iPhone 4 recall, something that could do a huge amount to Apple as a company. This seems to be the only course of action – one that will play into the hands of the upcoming Motorola Droid X.
According to Jonathan Sibun from the Telegraph, Apple shares fell by 4.2pc, which totaled $9.9bn. We still do not understand how long Apple can keep its head buried in the sand on this one?