TheStreet.com is reporting that Apple has been secretly working on a hardware fix for the antenna issue, that has run rampant throughout the internet over the past few weeks. According to Rodman Renshaw analyst Ashok Kumar, Apple engineers have created a design fix that provides increased insulation to the defective antenna connection.
Kumar continues to explain that Apple has already passed on the design fix to its manufacturers. All new iPhones produced will include this fix, which essentially insulates the defective antenna connection that has disrupted the phone's signal reception. Dubbed an "internal bumper," this fix may not be ideal, but at least it is done internally, and does not compromise the external look of the phone.
Such a hardware change would certainly cause a temporary shortage in the iPhone, and according to Mike Abramsky, who reported that the current batches of iPhones are running "scarce," and that the next iPhone shipments have been delayed three weeks, up from the original 7-10 days. Could this indeed be caused by a hardware change?
So, what will Apple provide as a fix to its consumers who purchased the first 3 million iPhone 4s? Nobody is sure yet. Perhaps free "Bumpers" for all, or a small refund. But is a recall out of the question? Not exactly, although a recall would be unlikely, according to Abramsky:
This is a PR disaster any way you look at it. There's only one thing for certain: Apple's Death Grip Press Conference @10am PT tomorrow morning will be must-watch TV.The impact on Apple could cost as much as $1.8 billion in lost iPhone revenue for the quarter, an 11% shortfall. On the bottom line, the impact would translate to about 40 cents a share less than the $3.80 profit analysts are looking for in Apple's fourth quarter