UPDATED 16:05 EDT / JULY 16 2010

Steve Jobs Knows the iPhone 4 Isn’t Perfect. What Comes After Free Bumper Cases?

Steve Jobs held an unexpected press conference today, addressing the public about the iPhone 4’s antenna issues. Good thing–consumers were starting to get really pissed about the smart phone’s mounting connectivity problems. At least, it should be a good thing. Jobs promised iPhone 4 buyers a free bumper case, which is known to minimize dropped calls, with refunds in order for those that had already purchased one.

That doesn’t go for third party bumper cases, and the deal ends September 30. During the Q&A session of the press conference Jobs also said he believed AT&T would let people out of their contracts if they want to return the phone, still unhappy with the service. Our own Mark Hopkins commented on the statement, saying “hopefully Jobs’ mouth didn’t just write a check AT&T is unwilling to cash” during SiliconANGLE’s live coverage of the press conference, noting the ongoing issues that Apple and AT&T will still have to deal with.

“We’re not perfect… and that goes for you too.”

Also admitting that the iPhone 4 drops more calls than the iPhone 3GS, Jobs also used today’s press conference as an opportunity to point out the flaws of other smart phone makers. Pointing out the 22 days of research Apple has put into finding the heart of the problem, Jobs concluded that the real issue is the point of maturity for the overall smart phone market. “We’re not perfect,” Jobs said, noting that the iPhone 3GS has the same problem with its antenna. Samsung and other makers were called out for their manufacturing and design flaws as well.

So Apple has circumvented a recall, offered a band-aid solution, and apologized to its loyal customers. All the while, Apple also pointed fingers at other mobile device manufacturers and bashed the media for frequently printing misinformation, spanning topics from AT&T network coverage and tower regulation to his health and disrupted vacation in Hawaii (the iPhone 4 antenna issues actually took precedence over his island off-time).

And what about public perception?

The compounding issues may not have an immediate solution, but they do have a missed opportunity by way of media marketing. The iPhone 4 and its positive press coverage was practically doomed from the beginning, with Apple’s stern approach to leaked images of the pre-released device. Since then, Apple’s been defending the hype it built around the iPhone 4, though rather haughtily. How effective is a heart-warming FaceTime commercial if your call is dropped in the middle of your call?

At this point, the admittance of imperfection is probably the most Apple has said to change its outreach message to consumers, though offering free bumper cases was also the right thing to do. Since it’s likely not enough to squelch consumer or media dissatisfaction, Apple will have to do more to change the minds of many.

However, Apple makes rather calculated decisions when it comes to brand management, applying similar philosophies from its product design and implementation. You’re not likely to see much else from Apple until they’ve actually solved the problem, fully aware that people will continue buying its products. Three million iPhone 4 devices sold in the month since launch, with less than a 2% return rate means Apple’s press conference today was more like an Apple reality check.


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