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iPhone 4 recall odds and antenna fix

Since Apple announced that they were to hold a special iPhone 4 Conference today, there has been much speculation as to what the Cupertino company will do to solve the current signal issue caused by the poorly designed antenna.

Philip Elmer-DeWitt from Fortune Tech reports that there are several outcomes as to what Apple will do; Gene Munster from Piper Jaffray’s has been looking at the different options and odds on them.

This first option for Apple is to modify the current iPhone 4; this has a 50 percent chance outcome and would be done in store. The way to do this is by coating the antenna with a special non-conductive coating. This could be costly for Apple – with a possible 12 percent drop in Q4 2010 profits.

The second option is to give away those free Bumper cases, which retail for $29. This could cost Apple about $180 million that’s a better scenario than the 12% drop in last quarter profits.

The least likely option is to say nothing about the issue – cannot see that happening as the problem has gone too far, a U.S. senator is now involved.

Which course of action do you think Apple will take?



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