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.
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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.