Apple’s hugely successful next-generation iPhone 4 was a huge success (1.7-million units sold in first three-days) for the company given overwhelming demand for the product that propelled the iPhone to become the number one product launch for Apple.
However, the iPhone 4 did have one significant defect: antenna attenuation was caused if the device was held tightly (some would argue even lightly) from the bottom left corner of the phone.
Apple held a special press conference to address the defect following intensifying criticism, saying only a small percentage of devices was affected.
More specifically, Apple said less than 1-percent of all manufactured iPhone 4 devices had the defect, and only 0.55-percent of all the consumers who purchased the phone had directly called Apple Care about the issue. Additionally, the company said only 1.7-percent returned their iPhone 4 for a full refund, versus a 6-percent return rate for the iPhone 3GS model.
Despite the known, Apple stopped short of issuing a recall, instead opting to offer free bumper cases to consumers who wanted them.
Analysts expected a recall could have had reduced gross earnings by about 2-percent for the company.
Apple today announced that it would end the free bumper case program on September 30, and said the company would return to its normal product return policy: 30-days for a complete refund with a restocking fee.
Purchases made post September 30 would not be eligible for a free bumper.
The program will be closed as the company said late this afternoon, “the iPhone 4 antenna attenuation issue is even smaller than we originally thought,”
Demand for the iPhone 4 remains extremely strong, with Apple stores still without inventory.
Foxconn, the company that manufacturers Apple’s gem said it now produces up to 137,000 devices per day.
The device most recently launched this week in Korea, where there were more than 270,000 preorders made by consumers.