15 Jul 2010

Apple won’t recall iPhone4

No Comments Mobile, News

Earlier today Apple announced they would hold a press conference (type) event in response to the hugely escalating antenna issues the iPhone 4G is having.

Many have said that Apple will do a full recall of products, refurb them all pretty much before sending them back out – this would mean billions (dollars) in postal charges, hundreds of millions of man hours and parts … oh and it means they have found a fix (other than moving the antenna).

Much more likely in my view is that apple will simply send out the little rubber bumpers to all users, or ask the users to pop-in store to pick one up. The cost of this will be around 10% of a recall (maybe less). Unfortunately for Apple, either way the damage has been done, the chief rockers of the computing world, the top class products that “never break” have been scuppered – this said I doubt somewhat this will stop them from breaking even more records with this and other phones … Apple are Apple – so be prepared for an ugly bumper if you own an iPhone4 (and if you already have bought one expect a spare one in the post!).

Apple fans and people wanting apple products so badly will never change, they are a fickle bunch.

To re-affirm this IT Pro Portal released a blog post with reasons Apple won’t recall the iPhone 4.

1) Pride
Apple and Steve Jobs are proud. The last time in record where Apple’s CEO said that he was sorry was on the day of the iPhone 4 launch when he encountered issues with the Wi-Fi connectivity while live, on stage. Apple won’t easily admit that they’ve got it wrong, especially when it comes to such a basic feature of any phone and the way they handled the whole episode.

(2) Costs
Cnet estimated that recalling the iPhone 4 would cost $1.5 billion altogether, a very small but still significant amount of money. It would actually cost them less to give away free bumper or rubber cases (plus an Apple voucher) to anyone who purchased the iPhone. Then there’s the not so small issue of what to do with the defective iPhone 4. Should Apple refurbish them? Destroy them? Sell them as iPod Touch Special Edition?

(3) Shares
A recall will damage Apple’s reputation for a long time but more significantly, it will affect the company’s shares. Apple has lost a whopping 9.5 percent since the 21st of June 2010, that’s the equivalent of $25 billion or about $1 billion every day the Nasdaq was opened. At this rate, will lose its status as the biggest technology company in the world to Microsoft. At the time of writing Apple was done 1.80 percent.

(4) Lawsuits
Should Apple decide to recall the iPhone 4, it could kick start a number of lawsuits over existing Apple products and provide ammo to iPhone 4 lawsuits that are currently going on. Lawsuits cost money, take away vital resources, are a significant distraction and hamper confidence.

(5) Distortion Field
Apple won’t recall the iPhone 4 because there’s no problem really. Tomorrow’s event should be a masterclass of PR and disaster management; the fact that they have selected just a few journalists for the event means that the latter will be able to amplify Apple’s message. We’re pretty sure that those selected are key Apple influencers (as pointed out by MG Siegler from Techcrunch).

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