Apple to issue software fix for iPhone antenna

Apple tried to defuse a potential public relations bomb on Friday over problems with its iPhone 4, saying the reports of weak reception are due to an inaccurate signal display.

Just over a week after releasing the iPhone 4 to record sales, the company wrote an open letter to customers who say the antenna built into the frame of the device can be compromised when covered along the bottom left corner.

The problem has been widely reported and represents one of the biggest glitches to mar an Apple product release in recent memory. It has led to at least four lawsuits.

Apple said the issue was one of perception, because the inaccurate display made people think that their reception was dropping off more than it actually was. The company apologized and promised a software update that will solve the problem for the iPhone 4 and previous models, which Apple said also had the same problem.

"Upon investigation, we were stunned to find that the formula we use to calculate how many bars of signal strength to display is totally wrong. Our formula, in many instances, mistakenly displays 2 more bars than it should for a given signal strength," Apple said in the letter.

"For example, we sometimes display 4 bars when we should be displaying as few as 2 bars. Users observing a drop of several bars when they grip their iPhone in a certain way are most likely in an area with very weak signal strength, but they don't know it because we are erroneously displaying 4 or 5 bars. Their big drop in bars is because their high bars were never real in the first place."

But that explanation has not satisfied many critics, and the issue may become a threat to the brand, said analysts. Some were confused by Apple's explanation and insistence that its groundbreaking antenna design was not at fault.

"I'm more confused than before," said Avi Greengart, an analyst with Current Analysis. "Before, we knew that if you touched the iPhone 4 one way, the reception drops and now we know it drops but not by how much. If you hold the iPhone 4 in a certain spot, you're definitely affecting reception. I don't know that this (explanation) will make critics go away."

Free cases?

Greengart said Apple could nip the problem in the bud by just distributing free bumper cases, which solve the problem.

Tim Bajarin, president of Creative Strategies, said Apple deserves the chance to see whether a software update fixes the problem. But he agreed that the glitch has the potential to sow confusion among users and potential customers.

"If there are still reception problems, it could be a network problem as well as an issue with the machine," he said. "But we have to give Apple a chance with this patch to determine if it takes care of any of this."

Apple introduced an unprecedented antenna design on the iPhone 4, using a stainless steel band to act as a large antenna. The design has improved wireless reception for many users. But others have also experienced a weaker signal and some have lost calls.

Risky move

Antenna designer Spencer Webb, president of AntennaSys, said the external antenna was a risky move by Apple, because a user's hand can absorb the radio energy when it comes in contact with the antenna, a condition known as attenuation.

"When held incorrectly, I believe degradation in the new iPhone will be greater than the old phones when held incorrectly," he said.

Apple initially said that attenuation is a common problem with cell phones. But the company said if users experience weak reception on the iPhone 4, they should hold the phone without covering the left bottom corner or buy a bumper case, which Apple sells for $29. Apple has resisted calls to provide the bumpers for free.

Public relations experts said the problem could prove sticky for Apple if the software fix doesn't resolve the issue.

Chris Lehane, a crisis management consultant, said Apple's explanation will only heighten scrutiny and could backfire if customers and the media poke holes in it.

"If your crown jewel is your brand and credibility, you're putting your brand at some risk with an explanation, and you better be sure that the information will all check out," Lehane said.

Reality to perception

Gene Grabowski, a senior vice president with Levick Strategic Communications, said the issue has passed from reality to perception, and may leave consumers with the impression there is something wrong with the phone.

"The problem isn't the people who have bought the iPhone, but people considering it who may not buy it now," he said.

Howard High, a former spokesman for Intel, said the chipmaker went through a problem with its first Pentium chip in which a rare glitch produced calculation errors. Intel told customers the problem was minute, but eventually paid millions to replace their processors for users concerned with the flaw.

He said sometimes, as in the Intel case, logical explanations aren't enough.

"If the issue is one that's upsetting enough for your customer base and doesn't get addressed adequately enough, that can clearly damage the brand," said High. "But if they address it in a way that satisfies the customer base, the brand equity comes back."

E-mail Ryan Kim at rkim@sfchronicle.com

This article appeared on page D - 1 of the San Francisco Chronicle