Antenna-Gate Heating Up

Just the fact that it has been given a “-gate” moniker shows that the publicity regarding the alleged antenna flaw with the new iPhone 4 has reached widespread proportions. Already this week has been hot and heavy with iPhone 4 antenna-related news and today seems especially heavy.

It all started on Monday with Consumer Reports stating they can’t recommend the iPhone 4, even though it is their highest rated smartphone, because their testing shows there is a reception problem. This started off a renewed wave of interest in the story and the next few days were full of articles and bloggings giving opinions, suggested fixes, speculation on the possible problem, as well as conspiracy theories. On Tuesday Consumer Reports stated that they believed Apple should fix the problem for free, which then triggered outcries for Apple to recall the iPhone 4. There were even bookies giving odds on the probability of Apple actually doing a recall.

Today’s news is that an Apple engineer warned of a possible problem with the antenna early in the design phase. As well, reports are that current shipments of the iPhone are delayed possibly due to Apple deploying a manufacturing fix for the problem. Other reports are that iOS 4.01 may be released today, containing the signal strength indicator fix that Apple has promised. Finally, Apple has called a press conference for 10AM Pacific Time Friday morning. This of course, is just sending the press into a frenzy as they try to guess what might be talked about at this press conference.

As much as has been made of this problem, based on my reading I believe that there may actually be a problem – but at the same time it is likely being blown out of proportion.

Firstly, while there are many reports of the problem, there seem to be just as many people who are not reporting any problems. Of course, with the sheer volume of iPhones sold, even a small percentage of problematic phones could be a very large number. So the question is how many iPhones are actually affected? It will be interesting to find out the answer, if we ever do.

Consumer Reports’ testing seems to prove there is a significant signal loss, which they believe could cause dropped calls, if the phone is held in a certain way. Consumer Reports tested 3 different iPhones, which they claim they bought all in New York City, albeit at different stores. Of course, if those 3 phones were made in the same factory, then it could be that they found a flaw coming from a manufacturing flaw in a particular factory. It will be interesting to hear how Apple responds to Consumer Reports’ claims.

Finally, even with all the bad publicity, Apple is still selling the phones like hotcakes. Apple’s stock has taken a small hit, but many analysts are claiming that this is simply an opportunity for investors to get in on Apple stock while the price is down. There is the saying that “there is no bad publicity” and as long as Apple deals with the situation correctly, perhaps that saying will hold true this time as well.

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