As Apple Fixes One iPhone Problem, Another Looms

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By Douglas A. McIntyre Published

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Apple Inc (NASDAQ: AAPL) will have its big press conference today. Ahead of the event the company is in the midst of offering software and other solutions to weak signal and false signal readings on its iPhone 4.

Just as Apple appears to be slowly putting its iPhone 4 problems behind it, some users have found what could be a significant flaw with the iPhone 3GS. The BBC reported that “some owners of the iPhone 3GS are reporting that an earlier update to the handset’s operating system made their phone far more likely to drop calls.”

“The Apple support forum dealing with the problem now has more than 36 pages of comments attached to it. Apple has yet to give specific advice about this problem but many users report that restoring the phone’s firmware fixes the trouble,” the news agency reports. Apple may be able to dodge one problem with its iPhone smartphone series, but it may not be able to dodge two. The latest iPhone is so popular that it is still out of stock at many stores. Most analysts believe that the reception problem with the iPhone 4 may keep some consumers who were on the fence about purchasing the phone from delaying or even deciding against that purchase, but few experts expect it to do any real damage to Apple.

Problems with popular products have a way of perpetuating themselves. First, one or two Toyota Motor (NYSE: TM) models had problems with brakes or accelerators. Suddenly, the problem moved to other models, at least in the minds of some consumers, whether the problem is real or not. The imagination becomes stronger than rational thought.

Apple may have a second problem, one that effects a model that has been very popular–the iPhone 3GS, which was the company’s flagship handset before the iPhone 4.

Another model, another problem. Suddenly, Apple’s reputation for high-quality, well-featured handsets has been undermined.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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