50% Chance Of In-Store IPhone 4 Fix

Posted: Jul 15 2010, 2:55pm CDT | by , Updated: Aug 10 2010, 8:16am CDT, in Rumors | Rumors


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Piper Jaffray analyst Gene Munster has just issued a note to clients, giving 50% odds that Apple will provide an in-store solution to the iPhone 4's reception issue. Fortune reports that the most likely fix would be the application of a non-conductive coating. This could set back Apple sales by as much as a month, or 3 million units.

That would shave 12% off of Apple's Q4 EPS and could lead to the company replacing all existing iPhones with a slightly different design. A recall could cost the company as much as 1 billion, reducing Apple's calendar 2010 EPS by 7%.

Munster also gives a 40% chance that Apple will give out free cases. Either an Apple Bumper or a cheaper product. This solution would cost the company around $180 million, just 1% of their 2011 operating income. He also gave a 10% chance that the company will just explain the issue and do nothing.

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The Author

<a href="/latest_stories/all/all/5" rel="author">Robert Evans</a>
The excitement about new smartphones, tablets and anything mobile drive Robert to unearth the latest rumors and developments in this fast moving space. He adopted 4G as soon as it become available and knows where the mobile market is going.
Robert can be contacted directly at robert@i4u.com.




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