Challenging critics

Jobs starts to take a leadership role here. Responding to critics Jobs says that it is "human nature when someone or some organization gets really successful," people just want to tear them down. "Would you rather we be a korean company than an american one?" he answers on accusations that the iPhone screen is not that good.

Lowering Expectations

Apple's Jobs receives an interesting question on how to lower expectations for their products - which are often launched in overwhelming market expectation. "I've thought about that a LOT. We didn't fully understand if there were problems at that point." he admits.

Bloomberg 'is a total crock'

A little retaliation to the media here. Steve Jobs says that the report that they knew about the problems before designing it are wrong. He quite clearly states that he and his colleague Reuben were completely misrepresented.

Future antennae design

Analysts ask Steve whether there will be changes in future antennae design. "We're still working on this - we're happy with the design. ... we're getting a lot of reports from customers that it's way better than the 3GS." adding that their 'wizards in the lab' may be able to find a solution to it. "We have both an AT&T and Verizon cell site set up on our campus" for testing, he adds.


Duncan Stewart from Duncan Stewart Asset Management reckons this may affect the stock - perhaps due to the cost of the bumpers - "Apple shares will go down because there has been so much hype built into them, that it's almost impossible for the iPhone to exceed or surpass expectations. It can only meet them." Jobs speaking to the press conferences apologises to long-term investors, "To our customers who are affected by the issue, we are deeply sorry, and we are going to give you a free case or a full refund. We want investors who invest in Apple for the long haul, because they believe in us. To those investors who bought the stock and are down by $5, I have no apology. If we hit a bump in the road, it's like having kids.."

Jobs offers free cases

"One for every iPhone 4, if you've bought one we'll give you a refund, and we'll keep this going through September 30th." he says. "We can't source enough ourselves, so we're going to offer you a choice of others." adds Jobs who admits that people who aren't really happy with their iPhone can still get a refund. "So we do all this because we love our users. And when we fall short - which we do sometimes - we try harder" he adds.

Dropped Calls

Jobs admits that iPhone 4 drops calls than iPhone 3GS. "I have my own pet theory about this - when the 3GS came out, there was already a healthy market for cases that fit it. But in our store 80% of iPhones walk out without a case." he says (Looks like a move towards 'free bumper cases'?). Jobs adds that 'more than 500 emails' have been sent to him personally saying they don't know what the problem is.

'Small problem'

Apple says that this problem is a small problem - "The iPhone 3GS's return rate as 6%, below the smartphone average. Everyone was really happy about that. What were they for the iPhone 4? You'd think at least half these people would be returning their phones. Well, we've got the data: it's 1.7%."

'Apple is an engineering driven company'

Before delivering the data, iPhone says that contrary to most expectations Apple is a engineering driven company - however CNET dispute that. "Apple is a design-driven copmany with great engineering". Looking at their products in the past, iPod's and Macintosh computers have prided themselves on great design when other companies have offered better in terms of hardware capability.

We're not perfect, iPhone's are not perfect'

Steve Jobs has entered stage..."We're not perfect, iPhone's are not perfect" as he prepares to take questions before announcing that iPhone has shifted 3 million units..."We want to make all of our users happy" he adds.

Some perspective

Despite the 'hype' surrounding this conference, iPhone returns have been far and few between according to network operators Vodafone, 02 and Orange. "Returns have been tiny", a Vodafone spokesperson said.

'Whoopi murders her iPhone'

With just fifteen minutes left to go, here's a video of Whoopi Goldberg to keep you going...

Change in code?

News reports are emerging that iPhone's alledged 'software fix' has been tested by developers and found to have no 'new formula' at all. BBC suggest that the iPhone has simply 'added an extra bar' on to its software whilst the Inquirer goes further suggesting that Apple are simply grappling 'with a software update that fails to fix a hardware problem'. The following video put together by Mobile Crunch apparently shows how iOS 4.1 does not fix anything.

'Apple to focus on strengths'

Independant researcher Shannon Cross is suggesting that Apple is likely to focus on the phone's strengths. "We do not expect a recall and believe Apple will quickly move past this issue." she says regarding Apple's first phone with 'mass-market' pricing - "This phone positions Apple well vis a vis other smart phone competitors such as Nokia and RIM. iPhone is no longer an expensive device. It's now priced at the mass market." she said of it on launch

iPhone 3G slow after update?

Apple's own forum is awash with rumours that its new software update is causing the iPhone to operate more slowly with added issues outside of the antennae - "Help please, I have tried restore now I can not see my recent calls nor can I disconnect from a call if the other party doesnt hang up first." said one Linette Taylor from South Africa

Sales forecasts lowered at Kaufman Bros

"Based on our more detailed analysis of supply chain data, we are shifting our iPhone assumptions to latter quarters due to the high likelihood that an inventory drawdown and screen supply constraints could impact near-term shipments over the next two quarters," said Shaw Wu, analyst at Kaufman Bros. Wu reduced his forecast for this quarter to 7.5 million iPhone.

16:30 With the conference due to start at 6pm here's a roundup of today's news on the issue. Report says Apple will not recall iPhone 4, Schumer's letter to Steve Jobs and Apple buys web mapping company Poly9

Welcome to our live coverage and build-up of iPhone 4's briefing on claims that's its antennae malfunctions, combined with other problems with software that have been reported widespread across the internet.

Although not yet confirmed, the intention of the conference is likely to deal with the reported 'death grip' that causes the phone to malfunction when held in a way that covers an area over the top-left of the screen and affects signal through the antennae - which happens to be wrapped around the phone in a metal casing.

Apple's official briefing on the product is that it is a software flaw - a mathematical issue - however many - such as Consumer Reports - have commented on it as a design flaw that could involve a recall.

Here's what to expect...