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With the iPhone 4 antenna problems, Apple could have set itself up for a PR nightmare. With Consumer Reports flip-flopping between "Best Smartphone" and "Not Recommended," what will Apple do? Some crisis management people suggest Apple will inevitably issue a recall of the newest iPhone to smooth things over.
AppleInsider reports on a note to investors this morning written by analyst Shaw Wu with Kaufman Bros."So far, in our supply chain and industry checks, we have not seen any change in build plans or demand patterns and thus we are not changing our estimates looking for 7.5 million iPhones in the June quarter and 40 million in (calendar) 2010," he said in the note.
Cult of Mac is singing a different tune, however, after they contacted several crisis management experts who all believed one thing: Apple needs to issue a recall to preserve their brand image.
Chris Lehane, the former White House crisis management expert under the Clinton administration, claims that Apple has an issue similar to Toyotas over recalled cars due to malfunctioning systems, and that Apple must respond with something other than a software patch.
Another crisis management expert, Dr. Larry Barton, said, "Apple needs to put this fire out now. There has to be a military-like response to this issue. And we have not seen this kind of urgency."
Initially, there were rumors that Apple could be giving away the Bumper cases to affected iPhone owners, but then another report came in that said Apple was discouraging their representatives from giving away cases to appease customers.
This topic is definitely a heated one, and with two class action lawsuits over the iPhone, Apple could be facing many hurdles over their latest device.
Follow this article's author, Cory Bohon on Twitter.