Files under General | Jul 17th


Steve Jobs was seen “arrogant”, “defensive” and “upset” and the Antennagate is not over.

Some reactions:

Larry Magid (Huffington Post) wrote that while he was “pretty pleased” with Apple’s response to a relatively minor issue, he thought Jobs sounded unnecessarily defensive. “Truth be told, iPhone users can get a signal just as well as with any other phone as long they don’t put their finger on the little crack in the lower left side of the wraparound metal antenna.”

Jason Schwarz (Seeking Alpha): “Traditional media outlets got duped. The wild west of the blogosphere had a few isolated reports of iPhone 4 antenna issues and then Consumer Reports released a suspect report that was contrary to majority experience and big media everywhere jumped on board. False perception overtook reality. Kudos to Steve Jobs for putting the small minority in its place. Big media outlets should have done a better job of filtering this news for their customers. Actual statistics show 0.55% of iPhone 4 users have called AppleCare to complain about antenna issues and only 1.7% of buyers have returned the phone. The media created a crisis that did not exist as I explained in this week’s CNBC interview.”

Ben Parr (Masahable/Apple): “Apple didn’t come out of this unscathed, though. They had to take a beating from the media first. It doesn’t matter whether “antennagate” was overblown or not anymore: The damage has been done.

1. There will be financial damage (but not much). The free cases, free bumpers and iPhone returns will cost the company some revenue. However, we predict that the damage will be minimal in the face of overall profits. Expect record quarters — just not as high as they could have potentially been.

2. Apple is no longer perfect. That’s not to say that they ever were, but most people blamed AT&T for many of the iPhone’s problems rather than blaming the Apple team. Now, the door is open to criticism of Apple and its future products after Jobs’ admission of imperfection.

3. Future products will undergo more scrutiny. The media is just going to be more critical of Apple, at least for a while.

Consumers will likely remember “antennagate” when they purchase their next iPhone or iPad, and this episode might make them more cautious when they consider buying their next Apple product.”

Apple’s stock seesawed throughout the day and ended down $1.55, or -0.6%.


More reactions here including Consumer Reports saying:

“We look forward to a long-term fix from Apple.

As things currently stand, the iPhone 4 is still not one of our Recommended models.”

Oh, oh…

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