An iPhone 4 Recall Will Hurt Apple More By Opening Additional Opportunity for Android Devices Than Increased Expenses

Reggie Middleton's picture

Apple has had a hell of a time with what is arguably its most
important product release since the initial iPhone in 2007. The handsets
have been plagued with spotty screens, combustible USB ports, signal strength measurement inconsistencies, and the most damaging of the issues – an ill-conceived antenna design that
causes attenuation when held from the lower left had corner. Steve Jobs
did the Blankfein (Goldman Sachs CEO, stating that the Wall Street bank
was doing God’s work) imitation by opening his mouth when he shouldn’t
have and said that users were “hold the phone the wrong way”. Not only
that, but Consumer Reports just came out with a report stating that they can not recommend the buying of an iPhone until the antenna situation has been rectified, prompting speculation that Apple will be forced to recall millions of phones.

As a matter of fact, the review was rather poignant:

“If you want an iPhone that works well without a masking-tape fix, we continue to recommend an older model, the 3G S.”

Apple iPhone 4 antenna problem solution tape
One solution to the Apple iPhone 4’s antenna problem is to cover the lower left corner with tape.

As evidence of the danger of relying on “lifestyle” marketing (see An Introduction to How Apple Apple Will Compete With the Google/Android Onslaught)…

It is very easy to fall out of favor with the trendy crowd. While I
doubt very seriously that Apple is in danger of doing this anytime soon,
a massive recall will open the door for devices which are technically
much more capable, flexible and open than the iPhone, ex. the Android
powered HTC and Samsung devices. Basically, the danger to Apple here is
not the expense of a recall, but the loss of mindshare and potential
widening of the opening for some very capable competition – an opening
that did not have to be there!

Don’t believe me, click the link to the consumer reports article and peruse the comment section…

Posted by: John | Jul 13, 2010 11:40:28 AM

So, im suppose to BUY an iPHONE 4 that is CLEARLY DEFECTIVE and
spend another $30 to purchase a case for it? I have used so many cell
phones in the past 10 years and NEVER did had any problems with
signal/reception unless im in the subway tunnel. NOTE: These phones I
used are from Motorola/Samsung/Nokia and NEVER did had to purchase a
CASE or BUMPER to fix signal/reception issue. Also, prior to holding the
phone left/right handed NEVER had any issue. Signal/Reception is good.

Now, APPLE released iPhone 4 and he can’t even admit that it is
obviously a HARDWARE ISSUE, NOT SOFTWARE. Steve Jobs does not know
anything about phones. To say the things he said, he is making a MOCKERY
of the rest of the phone company that had a great contribution and
stellar reputation in the mobile phone business.

iPHONE 4 is a FAILURE! It has amazing screen resolution and other
nifty features, BUT can you hold the phone the NORMAL way WITHOUT a
case/bumper? I DO! Im using my DROID and I dont have a case/bumper for
it. I have FULL 4 BARS of signal/reception.

A cellphone is not a toy, it is used
for mobile communication. APPS/GAMES or SCREEN resolution should be the
LAST thing that a cellphone should be used for. To sell a consumer a
product knowing it is defective, should be reprimanded for FALSE
ADVERTISING. They should be taken to COURT the same way TOYOTA FAILED
to inform the PUBLIC regarding the incident pertaining to the gas pedal
getting stuck.

For Apple FANBOYS defending Steve
Jobs, WAKE UP! He clearly BLAMED YOU and EVERYONE else that YOU are
holding the phone wrong. Obviously HE DOESNT CARE if he could just
simply BLAME YOU for holding it wrong. The rest of his explanation is
pure BS! Unless you are a SHEEP and an IDIOT then go ahead and follow

It should be clear to all who peruse this space that this is a
significant potential threat to Apple’s largest revenue source. Even if
you don’t think it is a danger, Apple does, and as in the recent past, 
they are handling it in the wrong, George Orwellian-style, big brother
type wrong way…

Apple Censoring Discussions of Consumer Reports iPhone Review

Apple has been censoring discussions
of a Consumer Reports review that pans the Apple iPhone 4 due to
antenna reception issues, but the deleted threads are still visible on
the search engine

The iPhone 4 is the best smartphone Consumer Reports has tested, but the company refused to endorse the gadget due to antenna flaws — a fact Apple really doesn’t want you to know.

Apple is censoring discussions of the controversial review on its public message board, deleting as many as six threads on the topic. The censorship was uncovered by — the Unofficial Apple Weblog — based on a tip from a reader.

Though deleted from Apple’s website, the online conversations are nonetheless still available online, cached by the Bing search engine [of course, Microsoft found a way to cache this :0-)],
noted The deleted comments reflect the concerns of users and
prospective owners at an issue that has been dogging the iPhone for
weeks: persistent reception issues caused by holding the Apple phone at a
particular angle.

See the video here…

For more on Apple and Google, head to head, see:

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Oh regional Indian's picture

Apple's iron grip on normally intelligent people's psyche is quite interesting to watch.

Such extreme opinions.

If you step back for a minute, you see you've just been herded into either corner. MS Bad, Apple Divine. Apple for gay artists, MS for engineers.

Fractally, just another divide and conquer move/victory by laughing powers that be.

I once bit a byte from an Apple.


Puffer's picture

My G1 serviced by T-mobile was the worst choice ever. This device but especially T-mob, completely useless, cumbersome, without any attempt at customer support. Electrocution: repeated shocks with removal of charger. Remedy, use the damned thing for a camera, or phone back-up. T-mob then send a letter cutting off service. Oh ya - these ass holes come alive when its time to shut shit down. Android: what a hoot! Applications are so primitive that access to simple bank security cannot be supported. Purchasing via shopping cart over the net will not work - but phoning the outfit will? What good is it? Camera also is a laugh. Note: when you are on their (T-mob) shit list, they pass your name and other info around while making varied threats. Solution - remove battery, place on hard surface, smash with sledge hammer. Are you listening T-mobile? You suck.

dcsos's picture

Its a non-issue-

What fool operates an expensive iPhone without a case?

No no not the 30$ case

The $5 one you get from the street vendor protects you investment fine

No antenna problem

Testicular Cancer's picture

One sign of a fanatic or a cult seems to be inability to accept legit & constructive criticism. Steve Jobs, Barack Obama, that guy from Waco; see a pattern?

JohnKing's picture

Apple and google both have cult like followings.


If Jobs wanted to finish out the game correctly, he would fire up a search engine. Apple has enough brand to bring the visitors but I don't think google has enough juice outside of its clique to get another winner like search (which is turning into a pile of shit as far as results go).



NoBull1994's picture

Nice spelling - "oppurtunity"?  Fucking retard.  Tyler, kick this fucker off the board.

truont's picture

You remind me of my 7th grade English teacher.

"Form over substance!" she screamed at us.  "Form over substance!"

That said, it is preferable to misspell words in the body of a work, rather than the title of the work...

Scisco's picture

Great post Reggie. I would like to add something for you to consider. As you mentioned, Apple has a monopoly on all their products right from the store to the hardware and make sure that it stays that way. So, what happens when the next igadget is a flop. It is not like one can go to another brand. There will be some existing stock of previous versions but that won't last very long. All the money that was sunk into accessories, apps, music and video suddenly become worthless because it won't work on anything but in the igadget. That would piss me right off but then I never understood Apple products so I could be way off the mark on this one.

whatsinaname's picture

I like my new HTC Evo 4G thru Sprint.

Downloading movies via phone real time.

who would have ever thunk phones would move this far ahead so soon?

It has a super camera too..

truont's picture

They should call it the iPhuckdup.

truont's picture

The banner ad above this article was Apple's iPhone!  How...ironic....

ZeroPower's picture

I know its weird right?! For some reason whenever im on my fav pr0n sites i get ads for girls that are in my area and ready to mingle - never on any other sites though :(

What gives??

RichardENixon's picture

Yea and all of them seem to want to be paid before they'll do any mingling at all. I'll be damned if I'm gonna pay for mingling.

playitcool's picture

Contextual ads aren't ironic. 

Da Canuck's picture

I'm loving my new Android HTC Legend, which I've had for a couple weeks. Apple is the new Microsoft.

TinFoilHatMatt's picture

Apple is the new Microsoft.

So true.  I upgraded from an iphone 3 to the HTC Desire a month back, been really impressed so far with Android. The motivation for me to not get an iphone 4 was not so much the  hardware issue, but the fact that Apple has become soo mainstream.

Scisco's picture

Right on the money. What I still can't get over is how is Apple getting away with it. Microsoft got slammed because they bundled IE with Windows. Apple bundles everything together. Still waiting to see a version of OSx without safari or itunes.

MarketTruth's picture

Apple is FAR MORE EVIL as you have to buy their hardware too. Where is a Dell or HP with an Apple OS as standard? And trust me, you do not want to know the politics and lowlife arm-twisting Apple does to music artists and recording labels. Apple makes Microsoft look like Mother Teresa.

Ripped Chunk's picture

Right on the money Reggie.

Apple clearly has a massive profit margin on this i -junk because the failure rate is well in excess of 20% if not 30%. Who else can pull that off?

It breaks. Call them up, BOOM! A box arrives at your home or office the next day and you have a refurbished or new unit back in 3 or 4 days.

Great business plan.

traderjoe's picture

It'll be a slow process of decline. The early adopters want to be cool. They want something different from the masses. They'll move on and create a new buzz on something. They want to discover something and show it off. And the AT&T network is groaning under the pressure of all of the data hogs...

The masses want to be cool, but they'll feel a little betrayed by this. They'll keep buying for now until the next alternative comes along. But it's a chink in the armor of AAPL. It's the start of the peaking of the lifecycle of the company - it's rolling over and 2-3 years from now you'll look back and this will likely be the catalyst...

PicassoInActions's picture

He can solve the problem quickly. Unlock the stupid gayPhones and people will forgive him and will buy another 100 million of those.

Sudden Debt's picture

One of my friends already has one, and I've noticed they didn't even fix the 3GS problems and added with the new ones, my next phone will be a android.

On the other hand, I'm a old fashion kind of guy and might hold on to my old 3GS for at least another year. There's a crisis you know...

Vampyroteuthis infernalis's picture

Ahhh pity, no more new operating iphuckers 4.0. Steve Jobs destroyed Apple in the 1980's. He should have walked away a couple of years ago while on top. History is repeating itself.

Rogerwilco's picture

@ Vampyro

Yeah, he's a real loser. My mortgage was paid off early because of his complete incompetence, and the 500 shares of AAPL I bought in 2003.


whatsinaname's picture

built by suicidal Foxconn employees ?

seventree's picture

Steve Jobs destroyed Apple in the 1980's. He should have walked away a couple of years ago while on top.

I would have to disagree. Jobs jumpstarted a flagging brand when he came back, mainly with design concepts so 'cool' they convinced people to pay double for an Apple product compared to a more mundane device that did essentially the same things. I suspect 2 problems converged here:

  1. The company started to believe in its own legend, thinking they could succeed in high tech business without really trying
  2. A series of pre-launch product leaks resulted in such tight security that there was virtually no testing outside the company

This is strictly from an outsider's viewpoint. I'm too cheap to buy their stuff, and too cool already to even need it.  :>)

Vampyroteuthis infernalis's picture

I agree with you Seventree, Jobs did jumpstart a flagging brand. The problem is he will drive it into the ground if they pull stunts like pushing products too quickly. Reggie made the comment about the Iphone 4.0 being a good product. I don't know. That being said it won't take too much for the perfect image to fade if other "issues" mentioned in the article above continue. Digital empires vanish quickly. 

highonlife's picture

One bad product is scarcely a good enough reason to make Steve quit. If that was the case, i wonder what you would say about the other Steve....Balmer that is.

Reggie Middleton's picture

Actually, the iPhone 4 is a very good product. It's just that it was rushed out of the door, most likely crammed with ill-tested features in anticipation of competing with the upcoming crop of feature rich Android phones.