Apple hit with lawsuit over iPhone’s 3G speed and reliability

“Amid growing criticism from 3G iPhone customers, a class action complaint was filed against Apple Tuesday in U.S. District Court in Alabama,” Ashley Phillips and Ki Mae Heussner report for ABC News.com.

“The lawsuit alleges that despite aggressive marketing that the 3G iPhone is “twice as fast for half the price,” the much-hyped smartphone is actually much slower than advertised and prone to dropping calls,” Phillips and Heussner report.

MacDailyNews Take: Apple clearly states on their website (in multiple places):

Twice as fast. Half the price.*

*Comparisons between iPhone 3G (8GB) and first-generation iPhone (8GB) running on EDGE. Actual speeds vary by site conditions. Requires new two-year AT&T rate plan, sold separately to qualified customers.

Phillips and Heussner continue, “‘Apple sold these devices on the promise that they were twice as fast as the pre-existing phones and that they would function suitably, or properly, on the 3G network. But, thus far, Apple and the phone have failed to deliver on this promise,’ Jonathan Kudulis, an attorney with Birmingham, Ala.-based Trimmier Law Firm, told ABCNEWS.com. Trimmier is the firm representing the Ala.-based plaintiff, Jessica Alena Smith. But Kudulis says, because the complaint was only filed yesterday, Apple has not yet been officially served with the lawsuit.”

“Earlier this week, as customers complaints ran rampant, Apple released a software update for the 3G iPhone on iTunes. The software, called iPhone OS 2.0.2, is for “bug fixes,” but whether that includes the problems customers described to ABCNews.com is unclear. So far, Apple has not released a statement elaborating on the software update,” Phillips and Heussner report.

MacDailyNews Take: That is incorrect. USA Today’s Ed Baig reported yesterday, “Apple spokeswoman Jennifer Bowcock said on Tuesday, ‘The software update improves communication with 3G networks.'”

Phillips and Heussner continue, “Jupiter Research analyst Michael Gartenberg characterized the problem as a minor one. ‘Any product is going to exhibit a certain amount of problems. Well, I have reception problems with a variety of [carriers]. Reception in terms of cell phone really comes down to where you are,’ he said. ‘I’m not seeing anything that indicates that this [is] widespread. & If the Internet tends to magnify smaller problems, then the fact that it’s an Apple product tends to magnify it even more.'”

Full article, full of uninformed speculation, including a recycled “recall” FUD from quote-for-hire Rob Enderle, here.

A mere six weeks after initial release, Apple is perfectly within their rights to be fine-tuning and optimizing iPhone 3G software, if that – as we currently believe – is indeed what’s happening.

62 Comments

  1. “The language of the user agreements and contracts are written so as to void expectations where circumstances are not optimum for operation. “

    But Federal law expands your rights, and eliminates many of those particularly onerous clauses.

    Apple sold it as a phone not a paperweight. They made performance claims about it. There are implied warranties of merchantability and fitness for purpose. It can be shown to perform badly where other 3G phones perform well, so it’s not purely a network or coverage issue. If Apple can’t fix this in software, they will be replacing hardware.

  2. @Going Down
    what other 3G phone capable of rendering full web pages is out there on AT&T;’s network to compare? Even on foreign 3G networks no other phone is doing the heavy lifting expected of an Apple Iphone. Other smart phones are routed to web pages made specific for PDA’s and that would not be a fair comparison. The laws of physics overules any Federal law that may seek to engage and enforce rights where none exist, e.g the right to float 10′ above the planet indefinately, the right to have cellular or web communication beyond what atmospheric and equipment limitations may allow. There has only been an admission by some that only 2% of Iphones are affected. Granted 2% of 4 million is 8000 units world wide, assuming Apple has sold that many. If it’s 2% of the first million sold that is still only 2000 units. They can be exchanged if they can’t be fixed by software. They are still under warranty.

  3. “what other 3G phone capable of rendering full web pages is out there on AT&T;’s network to compare?”

    Bobby Boy this has nothing to do with web pages.

    My phone and many other people’s won’t even reliably make or hold up phone calls, and when I check with other people’s 3G phones at the same time they have 5 bars and are having no problems.

    My guess is it’s more than 2000 phones. I haven’t even reported the problem to AT&T;or Apple. They’re well aware of the problem, what would waiting on hold to be told to wait for the 2.02 software release achieve?

    I suspect a lot of people are taking that approach. After the 2.02 release, the fix will be reverse engineered and the true nature of the fault and Apple’s corrective measures will be known. And if that doesn’t fix it or it is just some hacked workaround that tries to hide the problem, the floodgates will open. And if Apple doesn’t do the right thing, that’s when this class action gets some legs.

  4. The suit alleges the Iphone 3G is slower than advertised (implies web pages) and prone to dropping calls which is a 2.5 G function having nothing to do with 3G. I have no more frequency of dropped calls between Iphone 2.5G and Iphone 3G but I’m not denying that some people do. I’m just saying that a class action suit is nebulous at best , will not provided the intended remedy and if a certain percentage of the Iphone 3G are defective I’m sure Apple will replace them. When I first got my 8 gig gen 1 Iphone the touch screen refused to work after 2 days. I sent it back to Apple for repair and they provided me with a loaner phone (@ a $25 fee) while my phone was in for repair. When I go my phone back it worked flawlessly. I gave it to my sister after buying the new 16 Gig 3G Iphone. Apple has not denied replacing or repaing defective product in the past I don’t see why they should start now. A class action suit can’t fix defective product and it implies that Apple is not acknowledging or attempting to fix the problem.

  5. “A class action suit can’t fix defective product and it implies that Apple is not acknowledging or attempting to fix the problem.”

    Well, Apple’s not exactly being straightforward with the facts. And it remains to be seen if they really will recall 3 million phones if it’s a hardware problem, or do what they’ve always done every other time which is initially try to pretend no problem exists, or pretend it only affects a few people, then when it’s proven beyond all doubt, replace product but only for those who complain.

    But that process is beginning. Maybe 2.02 will fix it, maybe it wont. If not, maybe Apple will provide a new phone to everyone affected, maybe they won’t. If not these lawyers have staked out their turf for the resulting class action.

  6. Twice as fast was mentioned in context of a visual to web browsing. Half the cost was in context to the initial user cost not data plans. AT& T charges more for the 3G but it’s now on par with data plans for 2.5G Blackberrys.

  7. @Going Down

    Well, Apple’s not exactly being straightforward with the facts. And it remains to be seen if they really will recall 3 million phones if it’s a hardware problem, or do what they’ve always done every other time which is initially try to pretend no problem exists, or pretend it only affects a few people, then when it’s proven beyond all doubt, replace product but only for those who complain.

    Another example of people holding Apple up to unreasonable standards. Define straight forward. SJ stated that the problem seem to affect about 2% of users. You obviously weren’t part of that sample because I believe you stated that you did not report your unit. No manufacturing company is going to issue a recall on an entire field population without proper justification. The suit does not state that anyone’s unit was bricked, it just mentions dropped calls and not meeting performance claims. The claims have a disclaimer from both AT&T;and Apple of proper conditions must be met. As for the dropped calls there could be an issue of competing receivers in certain Iphones. No other phone on the market allows simultaneous voice and data communication except the New Iphone 3G. Yes you can have a speakerphone conversation while while checking a map location or web surfing simultaneously. I don’t even think the Iphone 2.5g does that or at least it did not last time I checked. It is possible that under certain conditions the 2 modes of operation in the IPhone 3G interfere. If so what are the exact conditions and can complaint data be correlated to validate those conditions. The only reason to replace units would be terminal or consistent malfunction or catastrophic operation check your torte law. Find me one company that has lost a law suit on performance claims that weren’t medically related ( drug companies can’t provide cures that disfigure, diable or cause death even if death is listed as the ultimate cure). I think the suit will prove frivolous and is baseless FUD. If there was that much of a problem you would not have lines to purchase the product 2 months after launch. As for 2.0.2 software it seemed to improve 3G receprion in my bphone and improved battery life. Hope it works for you .

  8. “No other phone on the market allows simultaneous voice and data communication except the New Iphone 3G. “

    What are you smoking? All my older 3G phones did that. Remember Apple is late to the 3G party. Others have had 3G GSM phones out for years.

    “The only reason to replace units would be terminal or consistent malfunction or catastrophic operation check your torte law. “

    Spell tort right, and realize that an action for a breach of an explicit or implied warranty is a contract action not a tort one. Of course you have a cause of action if a product does not perform as promised, even if it doesn’t completely fail. Here the phone is radically under-performing other phones by not making or dropping calls in strong coverage areas. As such that wouldn’t meet the minimum standards of merchantability or fitness for purpose.

    “No manufacturing company is going to issue a recall on an entire field population without proper justification. “

    No, but you and I know that Apple knows more about what’s going on here than they’re letting on. They may know that 100% of phones are affected, yet since they’re locking them into 2G mode as they go out the door at the store, few people are complaining. What I mean by transparency is telling consumers exactly what was wrong with the phone and what was done to fix it. If the fault is minor and the explanation of how it was fixed is convincing then there’s no problem. The iPhone hacker community will figure out exactly what is wrong with the phone and exactly what Apple tried to do to fix it and whether it’s a good fix or a bad hack to try to mask the problem. At that point Apple would have been better to have said what they know and explain how well they’ve fixed the problem than firefight against press stories saying Apple is spreading misinformation to avoid a recall.

    But as a rule Apple is secretive about problems and needs to be strong armed to do the right thing, and filing this suit starts that process. If Apple can make the problem go away with software updates, then the suit dies. If they find it’s a hardware fault and offer new hardware to all affected, the suit dies. But if they don’t do the right thing, that’s what the courts are for.

  9. Geez Going Down are you an engineer? I think people just want their equipment to work and are not interested in the details of exactly what’s wrong. As for what I’m smoking? Only two smart phone vendor had an AT&T;based 3G phones. These phones are not used the same way the the Iphone is used, check the stats. AT&T;’s 3G network is not exactly long lived and really hasn’t had the workout from a true performer like the IPhone. RIM just released the Blackberry Bold which is the first 3G GSM phone for AT&T;. In all my previous post I mentioned smartphones only. People are comparing performance to Motorola RAZR’s and other flip phones and I have consistently stated that this is an unfair comparison. The first Iphone used a 2.5G radio and could not do voice and data at the same time I know I had one but because the Iphone 3G use 2 different radios for the 2 different tasks this is a no brainer , especially with a multitasking OS like Mac OSX.

    The vast population of Iphones are not underperforming as you keep implying, without any evidence to back it up. All you have is speculation by so called journalist. Check post related to the problem on this site dated 8/25 where real engineers did tests to confirm that the Iphone’s antenna performance is not much better or worse than other smart phone antennas. Also check on the Yahoo finance website with news on AAPL and you’ll find an article stating just what to expect from all the various types of 3G networks out there from Verizon, Sprint and T-Mobile. Nobody has placed any blame with AT&T;and yet that may very well where the blame belongs. A 3G flip phone on the AT& T network is not carrying the same kind of traffic that an Iphone carries. A fairer comparison would be a Mac Book with a cellular modem that alllowed you to make phone calls through a Vonage USB dongle. BY the way AT&T;’s network may be fledgling but it is poised to surpass the networks of bothe Spring and Verizon and give near wifi performance in the next year or two. Peace!

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