We don't believe that Apple will announce tomorrow that it will recall its iPhone 4 smartphone not only because it doesn't want to but also because it cannot afford such a step right now.
The problems surrounding the iPhone 4 numerous hiccups are well documented but the most important of them all, the so call death grip - where users lose reception after holding the phone in a specific manner - is in no way unique to the iPhone 4.
Anyway, here are five reasons why Apple won't ask users to exchange their iPhone 4 even if there's a major design defect.
Apple and Steve Jobs are proud. The last time in record where Apple's CEO said that he was sorry was on the day of the iPhone 4 launch when he encountered issues with the Wi-Fi connectivity while live, on stage. Apple won't easily admit that they've got it wrong, especially when it comes to such a basic feature of any phone and the way they handled the whole episode.
Cnet estimated that recalling the iPhone 4 would cost $1.5 billion altogether, a very small but still significant amount of money. It would actually cost them less to give away free bumper or rubber cases (plus an Apple voucher) to anyone who purchased the iPhone. Then there's the not so small issue of what to do with the defective iPhone 4. Should Apple refurbish them? Destroy them? Sell them as iPod Touch Special Edition?
A recall will damage Apple's reputation for a long time but more significantly, it will affect the company's shares. Apple has lost a whopping 9.5 percent since the 21st of June 2010, that's the equivalent of $25 billion or about $1 billion every day the Nasdaq was opened. At this rate, will lose its status as the biggest technology company in the world to Microsoft. At the time of writing Apple was done 1.80 percent.
Should Apple decide to recall the iPhone 4, it could kick start a number of lawsuits over existing Apple products and provide ammo to iPhone 4 lawsuits that are currently going on. Lawsuits cost money, take away vital resources, are a significant distraction and hamper confidence.
(5) Distortion Field
Apple won't recall the iPhone 4 because there's no problem really. Tomorrow's event should be a masterclass of PR and disaster management; the fact that they have selected just a few journalists for the event means that the latter will be able to amplify Apple's message. We're pretty sure that those selected are key Apple influencers (as pointed out by MG Siegler from Techcrunch).