Analysts: Antennagate?  Puleeze, Antennagate is sooo over

“Apple Inc. reported results that blew past Wall Street’s expectations, boosted by robust sales of Mac computers, sending its shares 3 percent higher,” Carolina Madrid, Sue Zeidler and Matthew Lynley report for Reuters. “Apple’s stellar financial performance in the June quarter helped ease investor fears, and may silence a chorus of critics who have been hammering the company over its handling of the iPhone 4 “Antennagate” controversy revolving around complaints about signal loss on the new gadget.”

Some more analyst reactions:

• Ashok Kumar, Analyst With Rodman and Renshaw: “The iPhone 4 has been in a class by itself in terms of volume. Looking ahead with multiple carrier agreements, the story remains intact. The primary driver will be the iPhone.”

• Brian Marshall, Analyst, Gleacher & Co.: “The Antennagate problem, that’s gonna go away very quickly. I don’t think it’ll have a lasting effect.”

• Yair Reiner, Analyst, Oppenheimer & Co Analyst: “These are astounding numbers and even more astounding guidance. This is one of the few times in recent memory that Apple’s guidance has been ahead of the Street — at a time when investors were getting concerned the iPhone 4 antenna issues could hamper sales. Apple’s sending a strong signal it sees things differently.”

Read more in the full article here.

MacDailyNews Take: Antenna FUD fails. Again:

Additional testing of Apple iPhone’s 3G antenna again shows completely normal results – August 27, 2008
Apple iPhone 3G antenna test verdict: completely normal – August 25, 2008
Apple hit with lawsuit over iPhone’s 3G speed and reliability – August 21, 2008
• Apple: iPhone 2.0.2 Software Update ‘improves communication with 3G networks’ – August 20, 2008
• Apple releases iPhone, iPod touch 2.0.2 Software Update – August 18, 2008
• Steve Jobs: iPhone 3G reception issues affect 2% of total units shipped; software update coming soon – August 18, 2008
• iPhone 3G reception issues could be fixed via firmware update as early as this week – August 18, 2008
• WSJ: Apple preps software fix for iPhone 3G reception issues reported by some – August 15, 2008
• ABC News, Associated Press propagate iPhone FUD – August 15, 2008
• Nomura analyst Richard Windsor and his extraordinary knack for sniffing out Apple iPhone ‘issues’ – August 14, 2008
• Software fix on the way for iPhone 3G reception glitches – August 14, 2008
• Aussie telco source blames Apple secrecy for iPhone 3G reception issues – August 13, 2008
• Apple and AT&T investigating reports of iPhone 3G connection issues – August 12, 2008

43 Comments

  1. SEE! I posted earlier in the pre- conference call threads that this would happen almost immediately after Apple posted stellar results. The media and analysts spent the last two weeks relentlessly pushing AAPL down as far as it would go, mostly with the “antennagate” nonsense. The “smart money” got back into AAPL earlier today at a much lower price.

    NOW, the media and analysts will trivialize “antennagate” to help push AAPL up as much as possible while the great quarterly results is still “hot” news.

  2. @ Cascadians

    Why are you posting the same thing everywhere? ” width=”19″ height=”19″ alt=”smile” style=”border:0;” /> We heard Steve Jobs the first time…

    Most of those “amazing new products” will be the expected ones. New iMac, Mac Pro, and MacBook Air. A new batch of iPods. Maybe that “magic trackpad.” Perhaps there will be a new Apple TV and iTunes 10 (both taking advantage of that new NC data center which was stated during the call to become operational before the end of the calendar year). It will be exciting…

  3. Just one question from a sincere iPhone supporter and fan: wth out there is having the antenna issue? As many as they’ve sold, I personally know of 3 people with the iPhone 4. Plus myself. Two are having the issue. It’s soooooo over for those not having the issue or don’t have one. For those who do not live close to a store, and are busy, it isn’t. Thanks. Just want to get an impartial view of what’s going on from a wider view of folks. Do you return till fixed (because it needs to be) or does anyone with knowledge, and not smart remarks, know when it will be addresses? (something that still exists cannot be over)

  4. Put a bumper on it still have dropped calls.
    This issue sure is hurting our iphone sales. We have a few customers who are waiting before buying iphones fromm us.
    I don’t mean retail. I have business customers wanting hundreds who are iffy.

    I think there is something to it. I think its minor but there is a reason so many calls are being dropped

  5. Because it’s already a banner year with the iPad coming out.

    They’ve been hinting at exciting, very exciting new products for over a year now, and here’s the 1st clue of the timeline: THIS year.

    Not just upgrades. New. And the server farm will become operational soon.

    There might be something whose details have not peeked out from beneath the black cloth yet. Hasn’t been taken to a bar!

  6. @ Justatecfan

    You hold the phone in a way that maximizes antenna performance and minimizes the electromagnetic radiation (radio waves) being blocked and absorbed by your human flesh. In other words, when you are in a place with weak reception, adjust how you hold the iPhone to avoid touching or covering the bottom half-inch of the iPhone.

    When you are in a place with a strong signal, it should not be a problem no matter how you hold the iPhone. If you have a problem “everywhere” that is not caused by a weak signal, you probably have some manufacturing defect, and you should contact AppleCare (Apple’s tech support) by phone to arrange a replacement under warranty.

  7. OK. I could not be happier for Apple. Believe me. But dammit, I want objective analysis in these matters and these guys you are quoting either are not giving it or they have no idea what it is. Has it not crossed anyone mind at all that the fiscal quarter ended TWO DAYS after the release of the iPhone 4 ?! Does anyone get what that means? That it is IMPOSSIBLE that “antenna-gate” has ANYTHING WHATSOEVER to do with Apple’s earnings for that quarter ??!! Do they not get that?!

  8. @ kneugent

    It doesn’t matter, even if Apple only had three sales (with 1.7 million units sold) in the reported quarter. Apple is selling every iPhone 4 it makes as fast as they can make them. You can’t sell iPhones faster than you can produce them. Apple is not going to catch up to demand this current quarter, because there is still a three-week wait to get one (despite any negative impact of “antennagate”) and Apple has to set aside inventory for the continuing world-wide rollout. By the time Apple does manage to catch up with demand (probably after the holidays), no one will remember “antennagate”; it will become the non-issue it always was in the real world.

    The only actual impact from “antennagate” is the cost of those cases Apple is gifting to iPhone 4 owners. I think they said approx. $175 million. In relative terms, that cost is almost trivial.

  9. ken1w said: “In other words, when you are in a place with weak reception, adjust how you hold the iPhone to avoid touching or covering the bottom half-inch of the iPhone.”

    While that sounds good in theory and would be a valid solution if it weren’t for human nature. My wife and I both tried doing exactly what you suggested for a week. It’s not possible to continuously be aware of how you are holding the phone in call after call after call. Here in a semi-weak signal area at my house the iP4 would drop a call whenever the antenna gap was touched. A bumper would probably be the solution in our case, except that we both dislike cases. I’m now waiting to find someone or some place with a bumper so I can see it and touch it, then maybe reconsider and try an iP4 again.

  10. @ Wingsy

    Now that Apple has brought antenna location into my consciousness, no matter what mobile phone I use going forward, I will find out where the antenna is located and intentional, with selfish self-interest in mind, hold it in a way that (1) maximizes the phones performance, and (2) minimizes me intentionally wrapping the tissue in my hands and fingers (that I otherwise take great care to protect) around a concentrated emitter of electromagnetic radiation. The antenna is at the bottom of most mobile phones to move it as far from your head as possible; so your head is important but your hand is not?

    It’s just common sense. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” /> Even with a “bumper” in place, you should hold it by the sides, not the bottom. We should all be thanking Apple for inadvertently bringing mobile phone antenna location to everyone’s attention.

  11. “The “smart money” got back into AAPL earlier today at a much lower price.”

    Yup. A lot of us saw that coming… overblown scandal just before the report… fundamentals say Apple is sold out of the damn thing… Jobs mopping the floor with the press just before… It was very very obvious what was going on.

    And on the “Jobs mopping the floor with the press” front, the press thought he was “condescending.” Well, they are stupid, and they deserved far more of a drubbing than he gave them, IMHO. I would have told them they were stupid ass-hats, but I guess I’m not CEO material ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    Meanwhile, I’m loving my iP4 and my stash of Apple stock is looking very, very, nice. Hell, I’ll even get a refund on that bumper I bought but never bothered to install. I’ll consider that a dividend ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  12. Actually, the bumper is pretty nice. The buttons covering those on the iPhone are metal, the sides are a glossed plastic with the inner edgings that wool come into direct contact with the front and black glass is a soft non-slip silicone. It goes on easily and comes off just as easy.

    If only 200-300 were made, it would probably cost $25 to produce, but in the millions, about $5.00. Well worth the price and definitely will you keep from dropping it.

    I use it when i travel, but otherwise it stays off. Also, the bumper will not protect against dropped calls if you continue to hold it at the bottom half of the phone when in a semi-weak signal. But, I live surrounded by 5 cell towers so even with the iOS 4.0.1 update, I still get 5 bars 99% of the time so I can’t drop a call for any reason.

    There is a more proper way to hold a cell phone which use without thinking. You can always purchase it and now have a full month to use and return if you don’t get a good ROI.

    GOOD LUCK.

  13. @Wingsy

    Please pass on the iP4.

    The tone of your comment sounded so sad and made me feel bad for you and your wife.

    The adjustment to the iP4 sounds like it might be too painful for you and until Apple can make a phone that works without a bumper, you should just hold off.

    My guess is, iP5 will appear in two-years or so, and in the meantime get yourself a Droid. I hear the screen has a few problems, but at least it doesn’t drop calls.

    God bless you, man!

  14. @ilovemymac.

    Somewhere around the internet environs, may have been Appleinsider, Ashok Kumar and a few other guys “in-the-know” have stated that Apple already has a hardware answer to the problem. If you google it, you will find a comment about a hardware solution (something about putting some electrical component -forgive me, I’m not an electronics major) that will lessen the dampening effect of the human touch. It is supposed to come out with the new batch of phones that they are making.

    The only problem is if they do not mention it, could it open them up to other issues? Additionally, will the bumper solution be the end all to those who bought version 1 of the phone.

    By the way, I know most of you won’t believe anything if you don’t see it, so here’s the link. I found it before I hit the “Submit” button:

    http://www.appleinsider.com/articles/10/07/15/iphone_4_antenna_hardware_fix_anticipated_as_some_orders_are_delayed.html

  15. Called Apple today CS via 611 free on my iPhone 3GS today. Rep told me White pre-orders were originally going to start today but have been pushed back to next Tuesday July 27th.  He said he read that somewhere internally. Can’t verify this, but I thought some of you who are waiting for White would like to know. Seems plausible since Apple likes to start new things on Tuesdays.

  16. The hidden gem here is that while this was there biggest quarterly revenue in history they expect to bet it by 2.3 billion dollars next quarter. Sure educational buying will be a boost but they couldn’t expect that much with out new products coming in the pipeline.

    PS anyone think the giant trackpad would be a great aux input device for an OS device … such as a docked iPad or an iOS based Apple TV!!

  17. Back to the drawing board you “FUDPACKING POS Apple HATING BLOGGERS/NEWS MEDIA PRETENDING TO BE JOURNALIST NIMRODS!” There…! ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  18. @ RickW

    > Additionally, will the bumper solution be the end all to those who bought version 1 of the phone.

    Some people assume the bumper was the “solution.” For most of the people who already paid for one, it is protection. For the folks who now get one for free because they can, it’s a free gift.

    0.55% of the iPhone 4 customers who had to call AppleCare for ANY reason, called because of the antenna or reception. That’s NOT 0.55% of ALL customers (about 1 in 200); it’s 0.55% of the subset of customer who called AppleCare due to some problem they could not resolve on their own. So what is it, 1 in 2000? 1 in 20,000? Whatever it is, the number of iPhone 4 customers experiencing reception issues caused by the antenna is less than negligible. And as for actually returning the iPhone for refund due to concerns or problems related to the antenna, there are probably more customer who returned an iPhone 4 because they decided to wait for the white one.

    Therefore, if Apple quietly rolls out an invisible modification, I predict there will be some media coverage, but actual customers will mostly not care because they weren’t having any real world performance issues to begin with, and the superficial signs (the bars on the screen) have been rectified by the iOS 4.0.1 software update.

  19. Reality:

    My daughter is married to an AT&T salesman and has not heard of the antenna problem. We even discussed becoming an iPhone family.

    What does that mean? That only us techie nerds know about the antenna/bar/gas gauge issue and we are but a tiny part of the market.

    Everybody else is buying the iPhone and showing it to their friends how well it works, both as a mobile computer and as a phone. Business users will come around because they have friends, too.

    That is why this topic will be moot soon because there is no problem except false reporting from places such as Consumer Reports. CR is for the rest of the market, not for us techies I suppose. Apple may have responded to CR for good reason but then CR became hypocritical jerks by still not recommending the iPhone.

    If the iPhone is dropping calls even while inside a case then the cause is NOT the antenna issue. Think about it.

    Apple will have hell to pay if they give fantastic guidance while customers are returning their iPhones. I believe Apple’s facts as disclosed in the press conference are accurate and if so it’s just a matter of time before the truth sinks in.

    Prediction: next iPhone will have a new antenna design next time or maybe even earlier. I dont believe the current antenna is a functional problem but it is a PR (perceived) problem and I think Apple will place the cell antenna at the top rather than the bottom.

  20. SAYONARA Apple Naysayers, including Dan Lyons (Fake Steve Jobs), TechCrunch Arrington, Gizmodo Clowns, Paul Thurrott, with their hidden agendas, and the many disingenuous or clueless Antennagate Alarmists! The Apple Star Ship is taking off again, and you are not invited for the delightful ride!

  21. @ Justatecfan
    <It’s soooooo over for those not having the issue or don’t have one. For those who do not live close to a store, and are busy, it isn’t. Thanks. Just want to get an impartial view of what’s going on from a wider view of folks. Do you return till fixed (because it needs to be) or does anyone with knowledge, and not smart remarks, know when it will be addresses? (something that still exists cannot be over)>

    Yea well I can duplicate the problem, and I’ve ALWAYS had bad service in my house with AT&T . . . but I did solve the whole problem. First until you can get a case put some tape over the area . . . I used one of those round bandaids and it worked fine . . . use clear tape if you don’t care to make a joke of it. Then, since I have been bugging AT&T for a few months I called one last time and just said HEY, I need a free Micro Cell because you keep telling me the tower near me is being fixed . . . but it never gets better. I set up the Micro Cell and now I can use the phone without anything on it and never have a problem. If your network is weak . . . the problems will be magnified . . . this is not unique to my iPhone 4 . . . the Samsung and Moto’s we’ve used have all had signal problems.
    It sounded to me like Jobs said it would be re-evaluated in September. They probably have a final fix coming that will fill the gap . . . yea . . . sorry about the pun.

  22. @ Wigsey

    Get a free MicroCell from AT&T dude . . . bad reception inside a house is pretty common . . . but complain to AT&T about your reception and the 3rd or 4th time you call just say ask nicely for a free credit for a MicroCell and you will get it. Problem solved.

  23. “Apple’s sending a strong signal it sees things differently.”

    Hey (Yair)
    Why do u think Apple is now the #1 Technology Company Worldwide ?

    Yes, its because they See things Differently u Imbicile.

  24. @ The Future

    > Ending a phone call by simply touching the hot spot on the antenna is not nothing.

    I agree, that would be an issue. But just saying it does not mean REAL iPhone 4 customers are having that problem. Again, 0.55% of AppleCare iPhone 4 calls were related to in any way to the antenna or reception. The morons in the media are reporting this stat as 0.55% (about 1 in 200) of ALL iPhone 4 owners reporting issues related to the antenna. That would be pretty low.

    However, it’s really much lower, because it’s 0.55% of the small subset of customers who had a reason to call tech support for a problem they could not resolve themselves. So let’s be generous and say 10% of iPhone 4 customers had to call AppleCare for ANY reason. And 199 times out of 200, those calls were NOT related to the antenna or reception. What does that mean…? 1 in 2000 (not 200) iPhone 4 customers called tech support due to real world issues related to “antennagate.” And I doubt 10% of iPhone 4 customers had a reason to call AppleCare, so it’s even lower than my example. It’s several orders of magnitude less than “trivial.” It’s basically zero.

    So I ask you – If iPhone 4 customers were having such issues, wouldn’t they be complaining more about it? Wouldn’t the media have interview after interview with customers returning their iPhone 4 at the Apple Store? They have plenty of interviews with customers BUYING iPhone 4. Wouldn’t they have photos of angry customers lined up at the Genius Bar? The return rate at ATT for iPhone 4 is more than three times LESS than for iPhone 3GS. And that’s returns for ANY reason; I’ll bet “because of the antenna” is not even in the TOP 10 reasons for returning.

    > Will you and the other Antennagate deniers admit you are wrong when Steve announces, somewhere around Oct. 1, a real engineering fix

    Apple is free to improve the iPhone 4. Apple’s engineers have probably implemented many minor changes during previous iPod and iPhone runs that no one ever noticed. It does not mean current iPhone 4 owners need a “engineering fix” for their current obviously prized possessions. The proof is out there, in the real world, where REAL customers act in their own best interest. In this case, their own best interest is to hold on tight to their iPhone 4 and be silently happy.

  25. For me, antennagate had an upside. Let me explain.

    I own a 3GS and have very low reception from my cell phone provider inside the house (everything’s fine upstairs, though). I suppose the closest antenna mast lines up with the houses of my street and there must be a lot of reinforced concrete or other metal stuff in the 3 meters closest to the ground.

    But the so called iPhone troubles: “just don’t hold it that way”, apparently also hold for the 3GS.

    The solution for me is simple. I used to hold the lower part of my phone, under the assumption that the antenna on the 3GS was located at the top (you could see where it was on earlier models, but no longer on the 3GS). After all I am an electrical engineer and I do expect some attenuation from clutching the antenna side of my phone.

    But low and behold, the antenna turns out to be at the bottom.
    And I get at least an additonal bar of reception when I hold my 3GS at the middle or at the top. Now I am able to frequently complete phone calls without being disconnected given the low signal conditions inside my house.

    Do I feel pissed off because there is also an attenuating effect from holding the phone in a certain way? Of course not, that is to be expected. Except, FULL KNOWLEDGE of the antenna geometry, can be used REPRODUCIBLY to one’s ADVANTAGE in conditions of poor reception.

  26. I’m convinced that my i4 isn’t dropping calls when I get cut off due to antennagate. I think it’s because the proximity sensor allows me hang up with my cheek. It’s the same reason I inadvertently make 3 way calls and send random number tones to the other party during calls. I’ve taken to hitting the home button once the call is established to prevent accidental input and hang ups.

  27. I brought my iP4 with me to Canada – at least four people wanted to try out whether they could make the ‘bars go away’ by using the ‘death grip’. Well they tried, and all they could do, even by covering all of the metal strip with both hands, was only make the signal drop by 1 bar.

    After that attempt, all of them said they were impressed, and were going to buy the iP4 when it goes on sale in Canada.

  28. @ The Future,

    An external antenna on a cell phone is not a design flaw. It’s a design choice, a trade off. Better reception vs the possibility of attenuation to the point of dropped calls if you can’t keep your hands off the business end of the antenna.

    I am Canadian. 90% of Canada has poor to no cell coverage. In remote areas I use a high gain antenna on the roof and a 3 Watt booster between the antenna and the cell phone. That gives the cell phone 10 times the power to get out and it puts my hands 6 to 8 feet away from the external antenna.

    The point is, external antennas good, hands bad.

    So, The Future, you are the defective part, well, your hands are the defective parts.

  29. @ The Future
    … “No body is paying me, I’m not a troll, I’m not astroturfing.

    … a huge design blunder caused by Apple arrogance that they could get away with it.”

    Well, I can see by your language and vitriol that you are absolutely a Troll.

    But you may be right about not being paid. You’re not clever enough to get someone to pay you.

    And, “Apple arrogance that they could get away with it.”
    Yeah, that’s always been Apple’s way;
    constantly making crap products and simply hoping that no-one would notice. </sarcasm>

    The Future, we’ve seen some fairly clever Trolls on this site; Trolls that use disingenuousness, strawman arguments, statements with partial truths and critical omissions. Some creative stuff has been posted here.

    You too are a Troll, The Future.
    But you’re a crappy one.

    Geez, you can’t even do “Troll” right.
    Can you be good at anything?

    If you have a friend, and they’re old enough to drive, maybe you could be good at keeping the passenger seat warm.
    Hey, everyone has to start somewhere.

    Good luck in the future, The Future.

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