Free bumper iPhone 4 fix will cost Apple $175 million

Gerald Lynch Apple, iPhone, Tech Digest news 9 Comments

Apple must have breathed a sigh of relief when they decided that a full product recall of the temperamental iPhone 4 wasn’t necessary. Discovering that its signalling issues could be fixed by encasing the phone in a plastic protective bumper, each unsatisfied customer will be offered one as a free solution instead.

Apple’s CFO Peter Oppenheimer has revealed however that even the relatively inexpensive bumpers were going to take a substantial chunk out of the company’s profits.

“We will be deferring revenue corresponding to the value of the cases that have yet to be ordered by or delivered to eligible customers under this offer as of the end of the September quarter,” he said.

“We expect the cost to be $175 million and we expect the September quarter deferral to be recorded as revenue in the December quarter.”

Still, considering analysts had calculated a full product recall of the iPhone 4 would cost Apple around $1.5 billion, taking the hit on a few hundred thousand bumpers must feel like pocket money to the Cupertino company. Lets hope this financial slap on the wrist keeps Apple from making similar mistakes in the future.

By Gerald Lynch | July 21st, 2010

  • edge

    That’s nothing compared to what it cost Microsoft to fix the Xbox 360’s Red Ring of Death… by a factor of 10.

  • Abhijeet

    Quick Crossword App
    Play Crosswords FREE. Daily Crosswords with Hints.
    A fun and easy-to-use iPad, iPhone and iPod Touch app to Create Your Own Crossword Puzzles/Trivia Games – using your words and Publish it!. Give your brain a work out.
    Download Now:

  • flights to rome

    In recent days, I would buy mobile so I found here, and suddenly I found your blog Thank you for sharing this information is very useful for me.

  • abercrombie london

    Well said, such a person should be a good sentence, or the future will be more rampant.

  • Christian Louboutin Sale

    They specifically say that the card in no ways tells your future

  • Zip Repair

    I used the source you attached to this article.

  • keylogger

    Thanks , your endeavours are greatly appreciated

  • sim card recovery

    Thankx for sharing this.

  • keyboard tracking software

    thanks for info