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Despite rumors to the contrary, Apple addressed issues with the new iPhone 4 and insisted there should not be a recall.
Gamblers were hoping any recall announcement would be made after July since an end-of-the-month deadline was posted for all iPhone 4 recall bets at online gambling website Bookmaker.com. They had a “no recall” as the odds on favorite.
The main problem lies with a reception issue. Execs for Apple claim that a solution will be announced tomorrow (Friday).
Apple, which surprised consumers and investors when it said it will convene an iPhone 4 press conference, has kept mum on what it will do. But analysts are betting that -- despite lawsuits, a poor review from Consumer Report and growing user complaints -- it will not initiate a costly and embarrassing recall.
Since June 28 -- days after the launch, when complaints about faulty reception began surfacing on Internet technology websites -- Apple has lost about $16 billion in market value, with at least some of that related to the iPhone controversy.
The stock fell as much as 2.1 percent on Thursday, before closing down 0.5 percent at $251.45 on Nasdaq.
"We do believe that Apple needs to be more proactive in identifying and addressing the issues for the iPhone 4," BMO Capital Markets analyst Keith Bachman wrote in a research note. "A real risk is if the press keeps talking about this issue, iPhone 4 growth could slow."
Some analysts suggest Apple could simply offer free protective cases for the device -- which prevent the signal interference -- at a cost of $1 to $2 each.
Odds on a recall were at 3/1.
Aaron Goldstein and Reuters
