Apple Inc. will give free protective cases to buyers of its latest iPhone to alleviate the so-called "death grip" problem in which holding the phone with a bare hand can muffle the wireless signal
Apple CEO Steve Jobs announced the giveaway on Friday during a news conference at the company's headquarters, even as the company denied that the iPhone 4 has an antenna problem that needs fixing. The more than 3 million people who have already bought the iPhone 4 and new buyers through September 30 will all be eligible
People who already purchased the $29 "Bumper" cases will be refunded
Jobs began the event by saying, "We're not perfect," but was quick to point out that no cell phone is perfect. He played a video showing competing smart phones, including a BlackBerry from Research in Motion Ltd., losing signal strength when held in certain ways
Phones usually have an antenna inside the body. In designing the iPhone 4, Apple took a gamble on a new design, using parts of the phone's outer casing as the antenna. That saved space inside the tightly packed body of the phone, but means that covering a spot on the lower left edge of the case blocks wireless signal
Consumer Reports magazine said covering the spot with a case or even a piece of duct tape alleviates the problem. It refused to give the iPhone 4 its "recommended" stamp of approval for this reason, and it had called on Apple on Monday to compensate buyers
On Friday, in the company's first remarks following the magazine's report, Jobs said Apple was "stunned and upset and embarrassed."
Jobs said the iPhone 4's antenna issue isn't widespread. He said just over five out of every thousand users have complained to Apple's warranty service, and less than 2 percent have returned the device
"We're not feeling right now that we have a giant problem we need to fix," Jobs said. "This has been blown so out of proportion that it's incredible. I know it's fun to have a story, but it's less fun when you're on the other end of it."
Analysts have criticised Apple's first responses to reports of reception problems as dismissive, and cautioned that the company shouldn't come across as arrogant
Jobs apologised to buyers who had less than perfect experiences with the new device
"We're going to do whatever it takes to make them happy and if we can't make them happy we're going to give them a full refund and say we're really sorry we inconvenienced you, and we're going to do better next time," the CEO said
Shares of Apple, which had fallen about 1 per cent in the morning, climbed 1.3 per cent after Jobs' comments
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)
Steve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters on July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until September 30, 2010. (Photo: AFP)