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Launch day for the iPhone 4 arrived Thursday, complete with requisite traffic jams in Apple (Nasdaq: AAPL) Store parking lots and lines around blocks. Few gadgets are blessed with the kind of hype surrounding an Apple product, and the company seems to carry its magic cache with it wherever it ventures. Since the advent of the industry-defining iPod, Apple seems able to turn even public relations debacles into good publicity opportunities.
The iPhone fourth version, though, appeared to be having more than its share of technical kinks and hiccups on its birthday. Reports are pouring into popular blogs and Apple fan sites that new iPhone 4 users are seeing yellow blotches or stripes on their screens. Others are experiencing dropped calls or diminished reception when holding the phones in their hands.
These highly publicized reports of bugs must be weighed against sky-high sales estimates. For instance, Bloomberg reported that Pacific Crest Securities' Andy Hargreaves figures Apple may have moved as many as 1 million iPhones in a single day. All in all, was June 24 a good day or bad day for Apple?
It's a thumbs-up, Alex Spektor, analyst with Strategy Analytics, told MacNewsWorld. "Given the media coverage, sold-out inventories, and long lines for those who pre-ordered, it appears that the iPhone 4 launch was a good day overall for Apple," he said. "The new model's fresh hardware design and AT&T's (NYSE: T) competitive new data pricing plan will certainly attract upgraders and newcomers alike."
Hashing Out the Hardware
Still, no company wants its much-coveted hardware to roll out the door with basic manufacturing issues like uncured adhesives -- the issue to which those yellow spots are being attributed. While some users are reporting that their screens clear within a few hours of being turned on, Apple has built its reputation on sleek, sexy product design, and blotchy screens certainly are not part of that image.
The extent of the damage will depend on "whether the initial hardware issues turn out to be minor glitches or a widespread problem," predicted Spektor.
Can You Hear Me Now?
What customers are saying about the iPhone 4's antenna, however, may not clear up on its own. According to videos submitted by users to sites such as Gizmodo, the external antenna has an inherent design flaw. The fingers of a user's hand can cover a large portion of the antenna when holding the device for a call, especially with the left hand, rather than using it with speakerphone or a headset.
What many are assuming to be a hardware problem may indeed be software glitch, though, according to Adam Christianson, producer and publisher of MacCast.
"I personally was able to replicate the iPhone antenna issue, but as reported was still able to make calls with just one 'bar' visible on my screen," Christianson told MacNewsWorld. However, this doesn't rule out a software bug, he said, adding that "I was able to replicate a similar 'bug' on my iPhone 3GS running iOS4."
All in all, the hardware problems will need time to come into focus, contended Christianson. "We can't fully understand the scope or cause of those just on day one," he stressed. "It's far too early to make a judgment."
Ready for the Ride
Thus, the iPhone 4 is making Apple-sized waves in an already rough smartphone sea. Although the launch is a general success, according to Spektor, the competition is breathing down Apple's neck.
"Recent and upcoming U.S.-bound Android handsets from Motorola (NYSE: MMI), HTC, and Samsung are sure to challenge Apple in a way it has not been challenged before in this space," Spektor explained.
Christianson concurs, adding that "Apple has what is likely to be the most successful smartphone launched to date." Though activation volume caused some concern, he noted, "between shipping home deliveries a day early and having an open walk-in schedule for picking up reservations in store, it's gone very well for Apple and AT&T."
