At a hastily-called press conference at Apple’s corporate campus today, Apple CEO Steve Jobs admitted that Apple isn’t perfect at everything it does, but the company does want to make all its customers happy. After highlighting the iPhone 4′s stunning initial sales, Jobs moved directly to address issues with iPhone 4 reception: in a nutshell, Apple says the issue has been blown out of proportion—virtually all smartphones exhibit the same problem—but Apple will be offering iPhone 4 customers free cases through September 30. And if users are still unhappy, they can get a full refund within 30 days of purchasing an iPhone 4.
Jobs claimed the”grip of death” reception problem erupted into the public sphere just 22 days ago. Since then, the company has re-examined the issue and found it is not unique to the iPhone 4: Jobs showed video of other smartphones (including a BlackBerry device, the Droid Eris, and the Samsung Omnia) showing significant dips in signal strength when gripped particular ways. Jobs’ message: signal drop from gripping a mobile phone is by no means unique to the iPhone 4. “Every phone has weak spots,” Jobs said.
Jobs said that Apple’s internal testing revealed that the iPhone 4 would experience signal loss in some circumstances, but they hadn’t been hugely concerned about it because the behavior is common to virtually all phones. Jobs then cited statistics from Apple’s AppleCare customer support service showing only only 0.55 percent of iPhone 4 buyers called over the issue, and the overall return rate for the iPhone 4 is 1.7 percent, so far far less than the 6 percent return rate Apple saw with the iPhone 3GS. Jobs also says AT&T logs dropped voice calls, while while the company considers that data confidential, AT&T says the iPhone 4 drops less than one call per one hundred more than the iPhone 3GS.
[Note: Without hard call drop information, the value of call drop figure is hard to judge. If the iPhone 3GS dropped one call per one hundred and the iPhone 4 drops two calls per one hundred, then theoretically the iPhone 4 could be dropping twice as many calls as the iPhone 3GS. If an iPhone 3Gs drops five calls per one hundred, then the iPhone 4 would drop only 20 percent more calls.]
Jobs indicated his “pet theory” about the problem is that only 20 percent of iPhone 4 users are buying a case at an Apple Store, whereas 80 percent of iPhone 3GS users bought cases for their devices. So, Apple will be offering iPhone 4 users free bumper cases through September 30: one free bumper case will be available for every iPhone 4 sold, and users who already bought a bumper case will be eligible for a refund. Users will be able to apply for their free bumper via the Apple Web site beginning next week. Users who are still dissatisfied can return their iPhone 4s within 30 days for a full refund. Free bumper cases will also be available to international customers.
Apple’s bumper cases were initially being sold for $30.
Jobs also promised the white version of the iPhone 4 will go on sale at the end of July; at the same time, Apple will also be launching the iPhone 4 in a host of new international markets. Apple also plans to roll out a fix for issues with the iPhone 4 proximity sensor soon.
In comments after Jobs’s formal presentation, the Apple CEO characterized a Bloomberg story that he had been warned of iPhone 4 antenna problems before the product’s launch as a “total crock,” and that Apple has challenged Bloomberg to produce evidence of their claims. Jobs also dismissed a New York Times story that reported signal attenuation problems could be corrected with a software fix.
The Apple CEO also waxed a bit rhapsodic, noting that online media’s “search for eyeballs” can be damaging and blow issues out of proportion: he would like to think that Apple’s 34-year history would give the company a little credibility with regard to its motivations. Jobs also emphasized the vast majority of iPhone 4 customers are pleased with their devices, and that return rates at Apple Stores have been very low.

@ Michael, We owe you a drink for that one! haha
@ Chris: LMAO
Steve Jobs showed videos of other phones having similar “weak” spots on stage.
I think Apple blew it; didn’t broadcast live; and their strategy was “other phone have troubles, too” ?? Very bad… even blogged about it… http://www.matthewferrara.com/rssfeed/apple-press-conference-not-available-on-iphone/
I know what’s going to happen.
Imagine, a dark, dreary stage that has nothing but a blue flood light slowing circling the audience, catching Apple fans and news reporters alike so that their vision is directed to the stage. A giant, digital clock slowly counts upwards to 10:00AM PST…slowly, rhythmically, each second ticks by, accompanied by the “tick” noise from “24”, each beat passing through subs so large that it shakes the arena. Suddenly, the clock strikes ten and all falls silent.
Then nothing.
People begin to panic: “What’s going on?” “Where’s Steve?” can be heard muttered through the audience. People’s hands become clammy, sweat forms upon their brow as they wonder if it was a hoax – had this just been an elaborate ruse?
Then, cutting through the darkness like a hot knife through butter, an Apple logo appears and vanishes in a mere blink of the eye – some people aren’t even sure if they had actually seen it but in their hearts, they know something is coming. Then, it happens, a flash of light, a bank and people shield their eyes, pulling away as if a flash bang had exploded on stage! When the light fades, they turn to the stage, and there’s Steve – their idol, their hero, before them. Dressed in black from head to toe, he looks like Darth Vader without the mask and his eyes stare into the audience. He knows what they’re waiting for, he knows they demand answers for the failure of the iPhone and he simply smirks. His arms spread wide and the people, despite the iPhone’s problems, cheer – he knows they would for he is a God among them.
Steve turns his smirk into a smile and simply nods his head once, “Thank you for coming.” He pauses and reaches into his pocket, withdrawing the iPhone and he looks at the device, letting it slide through his fingers, watching the backlit screen before he turns his gaze back to the audience.
Steve steps towards the audience, holding the iPhone before him and stops at the end. “Yes, you have come here to hear a solution to the antenna problem and I will give you just that; a solution beyond your wildest dreams.” The crowd is silent and then, they begin to clap which soon leads to cheering and Steve calls for silence by simply raising his free hand and the crowd obeys.
Slowly, Steve steps back from the stage and raises the iPhone far above his head and the crowd watches, silent, his every move being followed. Seconds, minutes, moments pass and nothing happens and then Steve calls out, “BECOME ONE WITH THE DROID!” Steve then proceeds to slam the iPhone onto the stage with strength that is unbecoming of a mortal man. As the device had been rigged with a small smoke bomb, he is engulfed in the haze. The crowd becomes to stammer, confused and hurt – could Steve Jobs be betraying him? He then appears and laughs as he rips open his shirt reviling the emblem of “Google” Again, he laughs, “You fools, I have tricked you all! I have been with Google for years waiting for the perfect time to release a product to destroy Apple! My shares have been sold and the company will fall into ruins! With Google, I shall take over the world!”
Sounds of a Helicopter sweep overhead and a ladder descends from the ceiling and Steve leaps to the rope, catching the rungs and is pulled away. The crowd at this point is running amuck, news reports are filming and writing as fast as they can and even the hardiest of fanbois fall to their knees. Steve had betrayed them all and they never saw it coming…
…and the future has yet to be written.
that was good, chris. :)
@ Michael, We owe you a drink for that one! haha
If they’re SMART, they’ll blame it ALL on GIZMODO!!!!!!
“We were GOING to fix it, but THEY (points at Gizmodo) came along and &$@%# it up, so we had to ramp up production & release before the public went with our competitors, who were GAINING on us. So, if you REALLY want to point the finger (just make sure you don’t use it to cover the spot on the phone) at someone, point it at THEM.”
ummm who cares????
And they laugh at Microsoft!
i don't have signal problem with my blackberry 9700. I hope blackberry file lawsuit against apple.
Funny thing to me is why does he bring in the "other phones", I was always under the
Impression that apple products are sooo superior to all of the others. Then, they offer you
Bumper to fix this issue.
What a joke!
I bet the offer a full refund to anyone that is unhappy. And of course no one will want a refund, because, well the phone is still awesome!
good call. i didnt think they would offer bumpers since so many 3rd party companies will be making bumpers.
What are they going to do for the people that buy the iphone after September? It's just a fix for the early adopters…