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If Not A Recall, Then What?

July 16, 2010

When Steve Jobs (or someone else) from Apple addresses the press tomorrow, one detail seems certain: there will be no recall announced for the iPhone 4. This news comes from the Wall Street Journal late tonight, citing unnamed sources at Apple.

According to the report:
"Apple engineers were aware of the risks associated with the new antenna design as early as a year ago, but Chief Executive Steve Jobs liked the design so much that Apple went ahead with its development, said another person familiar with the matter."
If not a recall (which would be costly and a public relations fiasco for Apple), what can we expect tomorrow? I've got three ideas: Free Bumpers are an outside possibility, although I personally would like some absolute confirmation from the Cupertino-based company that wrapping the iPhone 4 in rubber and plastic would eliminate the antenna issue completely. Since Apple currently charges $29.00 for the Bumpers, revenue would certainly be lost, but a move like this might be enough to quiet some Apple critics. However, we all know that the Bumpers cost far less to make than the retail selling price, so the actual sting to the company would likely be minimal. A revision of Apple's return policy would give users more time to return or replace their iPhone 4. The current 30-day policy could be extended to 60- or 90-days. This would help Apple save face, at a low cost. In the end, I'd be surprised to see more than a trickle of the 2 million-plus iPhone 4 buyers return the device. Apple could do nothing. With today's release of the 4.0.1 iOS update (available free through iTunes), Apple could explain that the problem has been resolved and say nothing more. Of course if this is proven incorrect, Apple's problems would grow larger. I'm not sure what will happen at the media event. Apple, and Steve Jobs in particular, don't like to admit failure but perhaps it will be mea culpa time tomorrow at 10 a.m. PT.

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