The recall of iPhone 4 terminals for replacement would cost Apple $1.5 billion

According to some calculations made by specialists, Apple would lose $1.5 billion following a recall of all iPhone 4 terminals affected by the signal problem, the amount representing approximately 3.5% of the total cash available at the moment for those from Apple. But money is not the only thing that Apple would lose following such an announcement because the company's brand would be seriously affected by such a measure because Apple would have to officially recognize the fact that the iPhone 4 has a design defect/ manufacturing, and that for a company like Apple is disastrous.

On the other hand, offering a free Bumper for each customer would cost Apple only $1 per unit, as opposed to the official price of $29, i.e. a much lower price and would probably lead to a solution total of problems. Unfortunately, Apple will not make any of these moves, however, Vodafone Italia could offer a Bumper for every purchase of an iPhone 4, so Apple has recognized the problems in front of its business partners.

"It could be done immediately, would directly address the Consumer Report's concern, and would be financially immaterial. While it would force Apple to 'acknowledge' a design issue with the iPhone, we believe that consumers are increasingly aware of the antenna issue, and remedying it rather than dismissing or ignoring it appears most appropriate. Perhaps the bigger, longer-term concern for Apple investors is the emerging pattern of hubris that the company has displayed, which has increasingly pitted competitors (and regulators) against the company, and risks alienating customers over time."