This post has been updated.
I reported earlier today that I had just finished listening to the playback of Apple CEO Steve Jobs' news conference this morning on the iPhone 4 problem, and that I didn't hear an apology from Jobs about the defects that have plagued the launch of the new iPhone 4 smartphone.
I got a Tweet from someone who said Jobs in fact said he was "deeply sorry" for the problems.
Late today, I received a link to a transcript of the news conference at gdgt.com in which Jobs, when asked whether customers deserved an apology, said, "To our customers who are affected by the issue, we are deeply sorry."
For initially reporting Jobs made no apology, it is I who am deeply story. But, to clarify, it was not in his prepared remarks.
Jobs presentation in my view spent too much time saying all sorts of smartphones have antenna problems, blaming the media for over reporting the situation and saying the problem is relatively limited. My take on the news conference is not unlike that of Slate.com, which headlined its report, "Here's Your Free Case, Jerk."
“We’re not perfect. We know that and you know that. Phones aren’t perfect,” Jobs said at the beginning of an unprecedented 90 minute news conference. “But we love making our users happy and if you don’t know that you don’t know Apple.”
Jobs' unusual appearance followed weeks of controversy since the launch of iPhone 4 June 24, after which numerous owners complained of diminished reception and dropped calls. The company responded by saying all sorts of smartphones lose signal strength if held a certain way. It also said it was planning a software fix so the bars image on the device would more accurately display signal strength. What probably prompted Apple to act as it has today was the Consumer Reports announcement Monday that it could not recommend the iPhone 4 because of the antenna problem.
Today, Apple told select media invited to the news conference that anyone unhappy with their iPhone 4 can return it for a refund without deducting a restocking fee typically charged on return items. For others, they can receive free of charge, through Sept. 30, a rubber bumper that encircles the phone and eliminates the antenna problem. But because supplies of the $29 bumper are limited, Jobs said Apple invites customers to select from a number of other case styles online and they will be shipped free of charge.
But by Jobs saying all phones do this and complaining that “this has been blown out of proportion; it’s incredible,” he comes off as disingenuous.
Just as disingenuous was it's "blame the media" strategy as represented by Apple's playing of a YouTube video of a song dismissing the problems and saying "the media loves a failure." (See below)
Jobs also sought to further diminish Apple’s antenna problem by pointing to other brands of smartphones such as BlackBerry, Samsung and HTC that also lose signal strength depending on how the user holds the phone.
Jobs also provided some perspective on reports of problems with iPhone 4, noting that only 0.55 percent of calls to the AppleCare customer service were from iPhone 4 owners complaining of antenna problems. He also said Apple has sold 3 million units since the launch. An analyst on CNBC, which I was watching while following Macworld online, did the math and noted that about half of one percent is 15,000 units.
If Toyota had 15,000 cars whose owners reported unintended acceleration problems, Toyota would be in a LOT more trouble than it already is.
Jobs did acknowledge that AT&T, the exclusive U.S. carrier for the iPhone, reported more dropped calls per 100 calls for users of the iPhone 4 than for the previous generation 3GS, but only one more dropped call per 100. Jobs didn’t disclose what the actual dropped call rate was for either model.
Jobs also dismissed news accounts that Apple knew about the antenna problem but decided to ship the iPhone 4 anyway.
The live blog posts continued on Macworld until almost 11:30 a.m. PDT, 90 minutes after the news conference start, with Jobs and two other executives joining him onstage taking questions, which is encouraging.
But Apple’s belated decision to give away free bumpers after first admonishing dealers not to -- ““We [Apple] are not appeasing customers with free bumpers – don’t promise a free bumper to customers" -- says more about its regard for admitting mistakes and fixing them promptly than the words Jobs spoke today about satisfying customers.
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