Apple Indicated the Free iPhone Case to fix Signal Problems will Cost $175M

Apple [AAPL] last week revealed in the press conference that they were to provide a free case to all iPhone 4 owners and all those who plan to buy an iPhone 4 up till September 30. At that point the situation will be re-evaluated.

On the earnings call yesterday a question was asked about the free case and the impact it will have…

“Any way to quantify the impact of the free bumpers on next quarter?”

To which an answer came…

“Two impacts. We will need to defer revenue for the iPhone 4s that we’ve sold where we’ve not delivered the bumpers and we haven’t heard from the customers. Our estimate is $175 million. We will expense the cost of the bumpers when we ship them to customers. Our most important objective is to take care of every customer and delight them.”

If Apple would have opted for a recall (which appears it was never a real option), estimates indicated that this could have cost the company somewhere in the region of $1.5 billion which makes the $175M option quite a lot cheaper.

Apple will be making a page available on their site later this week where you’ll be able to pick a free case.

Via: Geeky Gadgets


  1. i ve been tryin with out success to get the free iphone 4 case is this just a scam i would like to no’ as all i see is alot of read up

    • They are not available just yet. Apple mentioned in the press conference last week that they would make them available at the end of this week.

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