Is Apple's iPhone 4 Fix Enough?

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ByABC News
July 16, 2010, 5:09 AM

July 16, 2010— -- Apple will give free bumper cases to all iPhone 4 users, in order to prevent reception problems that have plagued the new device since its new launch, Apple CEO Steve Jobs said today. Owners who have already bought a bumper case -- a plastic cover that protects the sleek smartphone -- will qualify for a refund, said Jobs and those who don't feel their problems have been addressed can get their money back.

"If you're still not happy, we'll give full refunds," Jobs said at a press conference at Apple headquarters in Cupertino, Calif. headquarters today.

Since the iPhone 4 was released on June 24th, users have complained of poor reception, particularly when holding the phone in certain ways. The problem, experts say, lies in the design of the phone itself, which features an external antenna wrapped around the side of the device. When a hand comes in contact with the antenna, it apparently is detrimental to the reception.

According to the Wall Street Journal, Apple engineers knew about the problem long before they released the phone to the public, but they didn't change the design because company CEO Steve Jobs was so enamored by it.

The problems have created a PR nightmare for the company, known for keeping a tight grip on its public image. Apple stock has fallen more than 7 percent since the phones went on sale.

Consumer Reports announced this week that it cannot recommend the phone due to the antenna issue and called on the company to release a permanent, free fix for the problem.

Modifications -- like a plastic case or bumper -- can help address reception issues, but some think that doesn't go far enough.