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Does Apple Have an Antenna Problem or Not?

By Anders Bylund | More Articles
July 19, 2010 | Comments (13)

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On Friday, Apple (Nasdaq: AAPL  ) CEO Steve Jobs did some damage control -- while simultaneously fanning the flames of controversy. Not bad for one day's work!

Giving away free cases to disgruntled owners of the new iPhone 4 is an obvious and crowd-pleasing move. In addition, Jobs said Apple would revisit the issue by Sept. 30, the cutoff date for free iPhone cases. I can only assume that a redesigned, varnished, or otherwise improved antenna will be part of that solution going forward, since only a small amount of the expected iPhone 4 sales have actually happened yet. Good job, Steve -- at least you're doing something about the problem.

But there's a downside, too. His Steveness also said that there is no issue -- that he could be fixing what ain't broken. Every smartphone has a weak spot where an obstructive hand will drop signal strength, Jobs argued -- it's just that the iPhone 4's is visually obvious. After namedropping Nokia (NYSE: NOK  ) and Motorola (NYSE: MOT  ) , Jobs showed videos of how to impair phones from HTC, Samsung, and Research In Motion (Nasdaq: RIMM  ) .

The videos covered phones running Android, BlackBerry, and Microsoft (Nasdaq: MSFT  ) Windows Mobile operating systems, and connecting to both AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) networks, eliminating a lot of possible biases. The message was clear: Everybody has this problem, so stop picking on our model. The "Antenna Performance" site Apple then set up even shows the iPhone 3GS succumbing to a bad grip.

This raised hackles across the industry. RIM and Nokia both issued statements complaining that Apple shouldn't drag them into its own mess. Nokia cops to antenna design being a complex issue, but notes that "we prioritize antenna performance over physical design if they are ever in conflict." 

RIM throws a tantrum: "RIM's customers don't need to use a case for their BlackBerry smartphone to maintain proper connectivity." But both competitors tread very carefully to avoid saying that Apple lied.

Many phones have their antennas in a vulnerable spot at the bottom of the handset, including the best-selling Motorola Droid. But Apple made the problem worse by exposing the physical antenna to open air and conductive, sweaty hands. FCC approvals of antenna designs take awhile, so a wholesale iPhone 4 redesign probably won't surface anytime soon. Maybe that's why Jobs specifically mentioned Sept. 30 as the date to revisit the issue. I'm no lawyer, but it seems reasonable to just cover the darn metal strip in some kind of nonconductive coating. Would that require reapproval by the FCC?

Given the immense promise in the smartphone industry, and the billion-dollar implications of claiming a leadership position early on, I'm not surprised to see companies favoring competition over cooperation. Still, I'm disappointed to see everyone involved acting like spoiled toddlers over this supposedly simple issue.

Will the smartphone makers ever grow up, or should we expect the occasional slapfight until the end of time? Discuss in the comments below.

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Microsoft and Nokia are Motley Fool Inside Value choices. Apple is a Motley Fool Stock Advisor recommendation. Motley Fool Options has recommended a diagonal call position on Microsoft. Try any of our Foolish newsletter services free for 30 days.

Fool contributor Anders Bylund holds no position in any of the companies discussed here, so you can't say that he's holding them wrong. Anders still recalls holding his radio antenna gingerly to boost a weak signal when Springsteen played Stockholm Stadium, but that was 25 years ago. Times have changed. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 19, 2010, at 6:43 PM, Henry3Dogg wrote:

    Importantly, although Apple's competitors complained noisily, and denied things that Apple hadn't said, none of them even attempted to deny what Apple had said. They just tried to give the impression that they had denied it.

    So it looks pretty safe to assume it's true. All mobile phones can loose signal depending on how they are held, and if the signal is weak to start with, then this may result in a dropped call.

    So presumably Comsumer reports will now either get real, or stop recommending ANY mobile phone.

  • Report this Comment On July 19, 2010, at 6:51 PM, shanghaid wrote:

    Isn't this the second foolish article today on the antenna? Well, there are a number of web articles showing links to passages from documents warning users of other brands about similar issues. So I think the issue has been documented before. Just that now, Apple has educated everyone. LOL

  • Report this Comment On July 19, 2010, at 7:25 PM, xmmj wrote:

    Apple does and does not have a problem.

    The new iPhone 4 antenna design is specifically to improve reception. This is indeed what many people have experienced. As Steve mentioned in the press conference, all design decision represent a tradeoff of some kind. In this case, it exposes the antenna to greater possibilities for attenuation depending on how it is touched.

    It seems to me, that since every phone experiences some degree of attenuation no matter how it is handled, iPhone 4 is not unique here. (One of the HTC phones even has a diagram in the manual - "do not touch here...") However, if the iP4 is handled in a manner that crosses "the gap" then the attenuation can be be severe. But is it REALLY so difficult to avoid touching it in this manner?

    So the question becomes (as it always should have been) in the real world does the iP4 get better reception overall than its predecessors? Most blog comments I have seen, and the Anand Tech article listed indicate that for the most part reception is improved. Let us add to this the fact that they are selling phones faster than they can make them, returns are fewer, and attenuation complaints to the hotlines almost non-existent.

    And so - this whole thing is turning out to be a tempest in a teapot. Because, in the end, it is the users experience that will ultimate rule.

    On the other hand, the whole affair may have caused some loss of faith in Apple. This will be more difficult to measure. It seems to me however, that the only loss of faith is amongst the hardcore Apple-hater crowd who never had any to begin with, and those media pundits who have always been Apple naysayers. All of whom are really irrelevant.

    Even Consumer Reports is taking heat. When I was on their blog page earlier today, I saw a lot more people criticizing CR for taking an uneven stance on the issue. (This may have changed in the interim - I don't know.)

  • Report this Comment On July 19, 2010, at 7:27 PM, xmmj wrote:

    Oh yes - link:

    http://www.anandtech.com/show/3794/the-iphone-4-review/2

    http://www.appleinsider.com/articles/10/07/19/htc_samsung_al...

  • Report this Comment On July 19, 2010, at 8:58 PM, demodave wrote:

    Of course Apple has an antenna problem. The iPhone has an antenna, therefore it will have antenna problems. Apple put the antenna on the outside of the phone, thereby exposing it to a higher risk of antenna problems. Again, nothing shocking here: it was a (potentially questionable) design choice. RF engineers at other companies were able to figure out that this might present an Achilles Heel. Also not surprising. If none of them could have identified a potential problem, they were all overpaid.

    But of course, they could not go after the iPhone directly. They had to find someone in the media who would be willing to comment from behind a media shield. "Quick, someone call that snot-nosed kid at Gizmodo." Done and done.

    The rest, as they say, is mystery.

    Oh, by the way, Anders Bylund:

    "Still, I'm disappointed to see everyone involved acting like spoiled toddlers over this supposedly simple issue."

    Snort. Whatever. :)

  • Report this Comment On July 19, 2010, at 10:31 PM, InfoThatHelp wrote:

    Please do not mind my language.

    Jessica Alba stark naked would of course attract a whole lot of receptive attention. (I had stripped away antenna coatings on the antenna of my Grundig radio and fiddled with it to get better signals, and sometimes succeeding !!) But exposing her all Ms. Alba would also invite a whole lot problems with people trying touch...

  • Report this Comment On July 19, 2010, at 10:33 PM, InfoThatHelp wrote:

    BTW. Touching Ms. Alba on any spot could land you in a county jail without the right for probation.

  • Report this Comment On July 19, 2010, at 10:35 PM, InfoThatHelp wrote:

    Ok. Seriously this time.

    No, by virtue of 98.3% iPhone 4 owners, it is a resounding NO to the question posted as the title here.

  • Report this Comment On July 19, 2010, at 10:37 PM, InfoThatHelp wrote:

    Millions of non-iPhone 4 customers would now be curious in buying an iPhone 4 and try to find out for themselves.

  • Report this Comment On July 19, 2010, at 10:43 PM, InfoThatHelp wrote:

    This is the way American Democracy works.

    Shut up or put up, 1.7% (sorry you got dragged into this)

  • Report this Comment On July 20, 2010, at 10:39 AM, sk8ertor wrote:

    Apple needs to start building a quality product. This is getting ridiculous now. After four years, Apple still can't build a phone with good reception.

  • Report this Comment On July 20, 2010, at 5:20 PM, DDHv wrote:

    If you ain't having some problem, you ain't trying to do anything.

    Anyone notice how few problems bureaucrats have?

  • Report this Comment On July 21, 2010, at 2:12 AM, InfoThatHelp wrote:

    Rim needs to start building quality products like Apple. This is getting desperate now. 50% product returns like the Rim Blackberry Tour and the buggy Storm are liable to bankrupt Rim.

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