Apple iPhone 4 free cases will cost about $175 million

In order to blow over the “Antennagate” controversy, Apple will be giving out free bumper cases to all Apple iPhone 4 users. This is going to cost the company about $175 million, Apple said in its quarterly earnings call.

The company said that the next quarterly results will have $175 million in deferred revenue because of the free iPhone cases. That’s quite a lot of cash for you and me but when you consider that Apple just recorded more than $15 billion in revenue for the quarter, I don’t think it will cause the company to lose sleep.

The whole issue started when the company introduced the new Apple iPhone 4 with the antenna on the outside. This enabled it to make the thinnest smartphone in the world, as well as shake up the form factor.

On launch day, we saw numerous reports and home-made videos showing that holding this antenna in a certain way would lead to demonstrable losses in signal bars. This “death grip” created such a stir that Apple had to call a last-minute press conference last week to address it.

Of course, the company said there is no design flaw with the Apple iPhone 4 and that all smartphones have this problem. Nokia, HTC and Research In Motion took umbrage with this notion and fired back with harshly-worded responses.

Although this was a problem that impacts everyone, Apple said, it offered free iPhone 4 cases to soothe over upset customers and it will soon be paying a price for it. That $175 million is still a lot less than an outright recall, as some industry experts have suggested a full recall could cost up to $1.5 billion.

In our poll, the majority of our readers wanted a full recall and retooling but now that there’s been some time to digest what Apple and the others have said, how satisfied are you with the iPhone 4 free cases solution? Let us know in the comments.

[Via Mashable]

About The Author

Marin Perez

Marin Perez has torture tested cell phones and smartphones for industry leaders like CNET and InformationWeek. He remembers when 4G was just a screen on PowerPoint presentations and is fascinated with the amount of innovation out there. Marin has spent a lot of time with BlackBerry and Android but he finally broke down a bought an iPhone to see what all the hype's about. He also has too many tablets.

MP ANYM

NOT SATISFIED.RECALL THE PHONE. WHAT HAPPEN TO CUSTER SATIFACTION. THE AMERICAN WAY OF TREATING CUSTOMER FAIRLY. I QUESS WE HAVE A THIRD WORLD WAY FO DURING BUSINESS.
@apotampkin22

ur such an idiot Recall? really the only way people are going crazy over a little sh1t like that because they need a story or 5 min of fame on youtube. dont all you idiots have a choice? if you dont like it or want it return it for a full refund and go get your self a freaking nokia or htc . just stop complaining about a little antenna issue thats been around for years but since apple has the hottest cell phone out there everybody want to talk sh1t about it.they are about making us happy not like other callphones companies that even if they sell you a fucked up phone they say you broke it, at least they are giving us free shit to make the idiots talking crap stfu.they should not give anyone shit and be like everyone else and not give a shit about what they sell. if apple were doing bad you wouldnt see the haters trying to sue them. just like all those fucking rednecks trying to sue because of the antenna issue, want to get easy money hire a redneck lawyer.IF YOU DONT LIKE IT GO GET A REFUND AND SHUT THAT FUCK UP.
Scott

Phone is great. People as usual are over reacting.
Alex

I'm glad we're getting a free cover, but my phone works pefrectly fine. Feel bad for apple.
@FrankieSB

To people calling for a recall, you can have the next best thing, your money back. Return your phone and please stop complaining.
KB11111

@MP
Speaking of 3rd world– terrific spelling, grammar, and sentence construction!
G

Love my new iPhone 4, signal issue has been blown way out of proportion. If you are truly dissatisfied get a refund and switch to verizon, sprint, or T Mobile. Having watched the presser from Friday I’m now more pro iPhone than ever, seems like they actually care
J2O

mine works like a champ. I love it, you couldn't pay me to give it up
JJ

I’ve tried and cannot recreate the so called antenna problem.
The iPhone4 is so solidly built and has great reception for me. The clarity of my calls on this is better than any phone I’ve ever used. It is amazing how people just follow blindly whatever they are told to perceive. Most of those complaining I bet don’t even have one!
judy

I have tried to get a case, but apple stores are all out of them, so now what?? I already purchased a case 2 weeks ago, why can't I get a refund? Even with the case, I am getting dropped calls!
Megan

I've tried the so-called death-grip without a case on my iPhone 4 and have yet to drop a bar or a call. Compared to my 3G, the voice quality is far superior. Way to go Apple!
STRIKER

And KB11111 must be a Secretary to care about this in a comments section
Gordo

My phone works great and OS 4.0 is super smooth. I will likely spend my $30 refund for my case on some sweet itunes as will may others so Apple really wont lose nearly that much money. The "Recall" idea is idiotic. Dangerous products are recalled. If you think there is a quality issue with your phone get a refund. I would also suggest MP ANYM travel some because they are obviously ignorant of how business is done both in the US and the rest of the world. Apple keeps its customers really happy and will continue to grow because of that. That is true in the US and many other countries.
cat1

everything works good but the problem is the phone part… the product is called iphone..so you would think the priority of the poduct is the phone category..so apple come on now fix the phone!!!!
Rob

They offered a full refund for anyone that wants it. Both of my iPhone 4 phones works fine, and I am not going to hit Apple up for a free case. I was going to buy a case anyway, as most are going to do; as far as the phone goes I wouldn't give it back if there was a recall I like it way too much. The 720P video and light/flash is outstanding.
bob

i refunded mine just wait till the next batch hopefully it fix the antena problems of the first batch
Mat

Are they saying that's what it will cost them to give everyone a case or that they will loose that in profit on their stupid bumpers ??? I do remember a post on here where they said that the 30$ bumpers costs about 73cents to make. I'm with Bob … they"re bound to fix or resolve the issue by the time the next production batch starts rolling out. Overblown or not, this needs to get resolved before Apple starts telling people to have two of their fingers cut so they can hold the phone properly lol
marinperez

Thanks for the feedback readers.
Drew B.

COMPLAINERS – - GIve your iPhone 4 (the BEST and SMARTEST phone on the ENTIRE planet Earth, back to Apple please so that the other 1.75 million can get one. I agree with most of the posts here, my 4 is the best iphone i have ever owned and I have had them all. I will say that for the reception issue, my 4 will stay connected on a call through 28 floors in the elevator where as the 3GS would not!! Thanks for letting me post here and ROCK ON APPLE….Macbook Pro 17 owner — Drew B. Madison, MS