“In the wake of Consumer Reports announcing that it would not be recommending the iPhone 4 due to the much-discussed antenna problems, there have been calls for Apple to recall the device,” Erica Ogg reports for CNET.
MacDailyNews Take: Who exactly is calling for Apple to recall the device?
Ogg continues, “While a recall could be damaging to Apple’s reputation, it would also be a costly endeavor, according to some calculations made by Bernstein Research analyst Toni Sacconaghi. In a research note on Tuesday, Sacconaghi estimated that while ‘a full product recall of the iPhone 4 (is) highly unlikely,’ it would cost Apple $1.5 billion, or 3.5 percent of its total cash on hand.”
“What would be more likely–and cheaper–is that Apple could issue a free rubber bumper case with each phone,” Ogg reports. “That would prevent a person’s hand from coming into contact with the phone’s antenna, which is built into its exterior metal strip. Although Apple charges $29 at retail for the rubber cases, Bernstein estimates that giving them away to iPhone 4 customers would cost the company $1 per unit.”
Full article here.
MacDailyNews Take: Drive down the price of AAPL shortly before earnings are reported by whatever means necessary, so that when it pops, you rake in a tidy profit. Rinse, lather, repeat; four times per year, at least. It’s just like stealing, but without the jail time.