An iPhone 4 Recall Less Costly Than Apple's Share Drop

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Considering the fact that all this bad iPhone 4 news has caused Apple to lose $5B in market share, experts seem to think a $1.5B iPhone 4 recall might not be so bad after all.

This growing anger is starting to cost Apple more than a $1.5 billion recall. On Tuesday, its stock shed $5 a share on a day the market traded higher. The sharp drop cost Apple $5 billion in valuation, writes Robert Cyran for Reuters Breakingviews, who echoed the PR dismay we reported in this space yesterday.
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I'm far from being an economist, but wouldn't a recall help stock plummet even further?
 
It might, but perhaps not as much as keeping the RDF running at full blast while everyone sees that the emperor really has no clothes.
 
Nah, stock price is determined by the perceived value of the company which in the this case (apple) is a combination of not only EPS and PE but also the goodwill consumers have towards Apple. Acting like dicks, i.e., BP after the blowout, blaming drops on faulty software, doesn't help.

What's amazing to me as a tech guy is how something so simple (usability in the real world, hello Apple) got by in testing. Someone didn't want to delay launch maybe by rocking the boat?
 
Continuing to manufacture, market, and sell defective phones is only going to continue to hurt their market share especially when they keep making lame-excuses and denying the problem exists. Apple cannot bury every problem and is finally getting what was coming to them. Their best option is to save face and perform a recall. Yes, the recall will hurt them, but they can recover from it, and would be less painful then continuing down the current path much longer.
 
Apple is holding a press conference on Friday at HQ regarding the iPhone 4.

I wonder what they are going to say. More lies?
 
In the long run I would think a recall would be best. if they do then they will be perceived as trying to fix the problem not ignore it and hope it goes away. One is a positive customer service response the other is being total pricks.
 
Recalls do cause stock to plummet but for a short time, once the recall slows down and people have a good product in their hands is when the stock rises again.

Leaving bad products out there with out doing a recall will keep your stock lower for the duration of that product until something comes out to replace it, usually leaving a bad rep with the company. You can see how this affected the car companies too.
 
The whole thing is insane. The wife and I both have iPhone 4's, and unless you're strangling the hell out of the phone with your hand at one specific place around the outside, while having a conversation, there's no issue at all.

If it were made by anyone besides Apple people wouldn't say a word about it. The phone has less weird little quirky problems like that than any other one I've own in the past

But whatever. I'm not an Apple fan and I have no stock in the company, so let them be damned :p
 
Trimlock said:
Recalls do cause stock to plummet but for a short time, once the recall slows down and people have a good product in their hands is when the stock rises again.

Leaving bad products out there with out doing a recall will keep your stock lower for the duration of that product until something comes out to replace it, usually leaving a bad rep with the company. You can see how this affected the car companies too.
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There is a big difference between people dying from car wrecks vs dropped calls. There is no safety issue with the iPhone. There won't be a recall but there might be free bumpers for everyone.
 
Trimlock said:
Recalls do cause stock to plummet but for a short time, once the recall slows down and people have a good product in their hands is when the stock rises again.

Leaving bad products out there with out doing a recall will keep your stock lower for the duration of that product until something comes out to replace it, usually leaving a bad rep with the company. You can see how this affected the car companies too.
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That makes sense.
 
JUSTJOEL73 said:
Apple is holding a press conference on Friday at HQ regarding the iPhone 4.

I wonder what they are going to say. More lies?
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That, along with the fact Apple has (leaked memo) been telling Apple Stores to prepare for a "big event" of some sort... Looks like prepwork for a recall.

RS3RS said:
The whole thing is insane. The wife and I both have iPhone 4's, and unless you're strangling the hell out of the phone with your hand at one specific place around the outside, while having a conversation, there's no issue at all.

If it were made by anyone besides Apple people wouldn't say a word about it. The phone has less weird little quirky problems like that than any other one I've own in the past

But whatever. I'm not an Apple fan and I have no stock in the company, so let them be damned :p
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Consumer Reports proved there's an issue regardless of what people say.

And I don't think any other company would have been as arrogant to have let this go on for this long.
 
TexUs said:
Consumer Reports proved there's an issue regardless of what people say.

And I don't think any other company would have been as arrogant to have let this go on for this long.
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I'm not saying there's no issue -- I can make it happen on mine by holding it a certain way. But to hold it that way and actually talk on the phone puts your hand in a really awkward position. "Death grip" is a pretty accurate term, and I'm really not sure why anyone would hold it like that to begin with
 
I love to read about the people who have zero issue with *their* iPhone 4 and automatically assume that those who have a problem are either crazy or making it up. Just because *your* phone doesn't have the issue doesn't mean there is not a (mass) issue.
 
ir0nw0lf said:
I love to read about the people who have zero issue with *their* iPhone 4 and automatically assume that those who have a problem are either crazy or making it up. Just because *your* phone doesn't have the issue doesn't mean there is not a (mass) issue.
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There's a mass issue of dumb people holding their phones in really weird ways :p
 
RS3RS said:
The whole thing is insane. The wife and I both have iPhone 4's, and unless you're strangling the hell out of the phone with your hand at one specific place around the outside, while having a conversation, there's no issue at all.

If it were made by anyone besides Apple people wouldn't say a word about it. The phone has less weird little quirky problems like that than any other one I've own in the past

But whatever. I'm not an Apple fan and I have no stock in the company, so let them be damned :p
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It works fine for when you have a great signal but when you already have a weak signal, the call will drop. This is physics in action not voodoo. This is why antenna engineers do no put the antennas on the outside edge of the phone but on the back of it.
 
Free bumpers to all, available at your nearest Apple store. It's the only logical solution.

Why Apple is fighting their customer's so much is anyone's guess. Jobs is obviously pulling the strings here, and he's done such a bang up job building the brand. Why hurt it over such a novice mistake, like this?

I don't think a recall would do any good, not unless they redesign the antenna.
 
IRSmurf said:
Free bumpers to all, available at your nearest Apple store. It's the only logical solution.

Why Apple is fighting their customer's so much is anyone's guess. Jobs is obviously pulling the strings here, and he's done such a bang up job building the brand. Why hurt it over such a novice mistake, like this?

I don't think a recall would do any good, not unless they redesign the antenna.
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Maybe we can check the local hardware stores to see if they have been buying a bunch of duct tape in preparation for the recall.
 
RS3RS said:
I'm not saying there's no issue -- I can make it happen on mine by holding it a certain way. But to hold it that way and actually talk on the phone puts your hand in a really awkward position. "Death grip" is a pretty accurate term, and I'm really not sure why anyone would hold it like that to begin with
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Just because YOU don't hold it that way doesn't mean others do. Plenty hold it like that when browsing.

When I'm on the phone my fourth finger actually touches that area myself.

Suggesting other people are holding it wrong is just as jack-assary as Jobs.

IRSmurf said:
Free bumpers to all, available at your nearest Apple store. It's the only logical solution.
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Doesn't fix the actual issue though. Not everyone wants to use a case.
 
For the iPhone 4 launch and beyond, we've secretly replaced Steve Jobs with Jen -Hsun Huang. Let's see if anybody notices.
 
Maybe there were too many left-handers during testing. You never know...

mrpc9886 said:
Nah, stock price is determined by the perceived value of the company which in the this case (apple) is a combination of not only EPS and PE but also the goodwill consumers have towards Apple. Acting like dicks, i.e., BP after the blowout, blaming drops on faulty software, doesn't help.

What's amazing to me as a tech guy is how something so simple (usability in the real world, hello Apple) got by in testing. Someone didn't want to delay launch maybe by rocking the boat?
Click to expand...
 
"Much to our surprise we found out there was an issue with the way your stock value was calculated. When it was showing your stock being worth more per share it was actually being displayed wrongly. We are changing the way your stock is value is displayed to make up for the error."
 
How the hell is this news? I pointed this out within 60 seconds of reading about the estimated cost of the recall in the first thread about this.
 
TexUs said:
That, along with the fact Apple has (leaked memo) been telling Apple Stores to prepare for a "big event" of some sort... Looks like prepwork for a recall.
Click to expand...

Or prepwork for a massive bumper handout of some sort...
 
RS3RS said:
I'm not saying there's no issue -- I can make it happen on mine by holding it a certain way. But to hold it that way and actually talk on the phone puts your hand in a really awkward position. "Death grip" is a pretty accurate term, and I'm really not sure why anyone would hold it like that to begin with
Click to expand...

Personally, without my case, I can't seem to hold mine at all without it happening. Before I got my case I was balancing the damned thing on my fingertips, touching the black plastik back of it, just to be able to browse the web at all!

I guess your milage may vary.
 
JUSTJOEL73 said:
There is a big difference between people dying from car wrecks vs dropped calls. There is no safety issue with the iPhone. There won't be a recall but there might be free bumpers for everyone.
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Yeah, cuz people who die in the middle of the Mojave desert when the car runs out of gas and use a dumb phone suffer more. "If only I had a driod I might live, or at least be able to browse the web while I die!"
 
mrpc9886 said:
What's amazing to me as a tech guy is how something so simple (usability in the real world, hello Apple) got by in testing. Someone didn't want to delay launch maybe by rocking the boat?
Click to expand...

i am curious about this and the leaked prototype that gizmodo had.


they said it was in a case made to look like a 3GS. if they did a majority of their field testing with disguise cases, and all their lab work with machines holding it, i could see it getting over looked. (i could also easily see it getting caught)
 
JUSTJOEL73 said:
There is a big difference between people dying from car wrecks vs dropped calls. There is no safety issue with the iPhone. There won't be a recall but there might be free bumpers for everyone.
Click to expand...

You seem to think that my general refrence to car re-calls were only talking about the death/unsafe issues. While Toyota and Audi both have had the same accelerator issues (seperated by almost 30 years) those are definitly an extreme case. But there have been vastly many more recalls not having to deal directly with something that will kill you.

Same annalogy applies, car companies have product out there that needs to have something changed to ensure product reliability (you know the thing promised to the user when purchased), the iPhone4 has the same thing and does have the same way to be resolved. If you leave the problem out there and fix it by using a new product release you won't get the same fandom that Apple enjoys.
 
Mmmmmmmm stock market beating on apple. Makes some tasty apple sauce

In all reality why is it so hard to admit you are wrong, fix the problem, and be on your way.

I guess if you have idiots who will purchase your stuff even if its awful you don't have to have the least bit of costumer service.
 
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