A number of consumers with Apple (NASDAQ: AAPL) iPhones are having trouble keeping 3G connections. They are also experiencing an unusual number of dropped calls.
The culprit appears to be a chipset from Infineon Technologies, a major chip provider for the Apple handset. According to MarketWatch, a Nomura analysts has reported: "We believe that these issues are typical of an immature chipset and radio protocol stack where we are almost certain Infineon is the 3G supplier." The problem seems very difficult to solve.
The news may keep potential customers from buying the new iPhone and may leave an opening for other companies like Sony Ericsson, Palm (NASDAQ: PALM) and RIM (NASDAQ: RIMM) that also build high-end smartphones.
The trouble is an example of what happens when a consumer electronics company is under pressure to bring out a new product. Apple knew that the weakness of its first iPhone was that it would not connect to fast wireless 3G networks. To bump up sales, it introduced a model capable of accessing the wireless internet's most recent technology.
It looks like Apple shot itself in the foot, and that could cost it some of its reputation. Some of its potential sales too.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
8-12-2008 @ 12:53PM
Robert Smith said...
Nice...passing along a completely unsubstantiated rumor by an analyst with a crappy trackrecord.
8-12-2008 @ 1:42PM
Wyseguy said...
There are no facts in that story. It's an analyst with a poor track record of inaccurate "sky-is-falling" reports on iPhone. He predicted last August that iPhone screens were going to start failing after six months. http://tinyurl.com/6nqzk9
There is no proof there is anything wrong with the iPhone 3G's chipset. None. Zero. Just one unreliable analyst's supposition based on the reports of a few iPhone users. There's nothing to substantiate it, or warrant an article titled "Bad chips devil Apple (AAPL) iPhone."
Come on, that's just irresponsible hit-whoring. You can do better than that, Doug.
8-12-2008 @ 2:48PM
Jeff said...
Every article Doug writes is like this.
8-12-2008 @ 5:11PM
Calvin Jay said...
I had the same problem for the first week I bought the iPhone. Then I later found out the drop calls was due to the magnet of the after market leather pouch I bought for the phone. Check if that is causing your headaches.
8-12-2008 @ 7:33PM
George H said...
Sometimes I think Doug that RIM pays you to do these 'rumour-based' articles...
Also your article about the App Store, when you say they "made next to nothing" which is basically wrong! Cause they made $6 million in a month!
8-12-2008 @ 9:59PM
Beltway Greg said...
Great story Doug! Keep up the good work!
Beltway Greg
8-13-2008 @ 1:13AM
George H said...
Laugh @ Greg...
The article is misleading "shot itself in the foot"... "cost to reputation" LOL
8-13-2008 @ 2:23PM
realitybites said...
Hey Doug,
Do anything you write ever have any chance of being correct?
At all?
Ever?
Your take on events and issues you don't quite understand is still always amusing to those of us that do.