The iPhone 4 antenna is expected to be discussed at today’s press event. What we and many others are expecting to hear is that Apple [AAPL] has found a problem with the antenna and that somehow they will keep the few million iPhone 4 users happy by offering a fix in terms of a case, or some sort of hardware recall.
The problem is that the iPhone 4 sold well and estimates indicate that a hardware recall could cost them in the region of $1.8 billion. The way that Apple decide to move ahead with this will hopefully be revealed later on today.
We are hearing from one analyst, Ashok Kumar, that Apple has created a design fix for the iPhone 4 that insulates the transceiver. According to the analyst (remember analysts are often way out, so take this with a pinch of salt), the iPhone 4 production process has been changed to include an internal component to insulate the antenna connection. This part has been described as an internal bumper.
The change will mean that Apple can keep the same design of the iPhone 4, but as the analyst says, it will prevent signal drop when holding the phone a certain way.
As we mentioned earlier, analysts are often wrong so we are not to hopeful that this answers the problems. If for some slim chance it does, it isn’t clear how Apple will handle returns. All will be revealed later today if that’s what Apple want to discuss.