It has been almost two weeks since a Nomura analyst reported the dropped phone calls due to faulty chips were a significant problem for Apple (NASDAQ: AAPL) 3G iPhone customers.
The mainstream press has been slow in reporting the trouble, but the FT made it a major story today. According to the paper, "Over the past few weeks, customers have flocked to Apple's online support forums to complain about weak or fluctuating signals leading to dropped calls and long download times."
Since the FT prides itself on being early to market with important news, what happened?
The media, in general, seems reluctant to take on Apple's image as an almost flawless designer, manufacturer, and marketer of PCs and consumer electronics devices. The company's customers are vocal defenders of the Apple's blue chip reputation and are rabid about attacking media that try to undermine that.
Apple's obsessive need to present itself as "perfect" is beginning to backfire because of problems with its newest product, the 3G iPhone. It would be better to come clean about the troubles and offer a way to fix them
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
8-18-2008 @ 9:17AM
emax said...
if there is a problem. Apple is already doing heavy investigation and working on a solution. Once they know everything they will make an announcement.
What would be the point to say " umm there are unconfirmed reports of failing iPhones and we don't know what's wrong yet. We are looking into it"
There is none the mainstream media would blow it out of perportion. Look at what these RUMORS and forum posts are doing already. I know 5 people with a 3g and they zero issues.
8-18-2008 @ 10:06AM
VERONICA said...
Doug...
While I agree this problem, (though overblown by the media), needs to be solved, I'm certain it has been a 24-7 urgency at Apple and at AT&T and will be resolved quickly. On the other hand, I have a basic Samsung phone on AT&T and it drops about every 4th call + when I was on Sprint, my dropped calls were even worse... who should we assail for that?
The point is that when you put ANY product under a magnifying glass, find a problem and then blather on and on about it in the media, everyone starts imagining it's happening to them as well. Look at support forums and blogs for any major cellphone manufacturer or service and you'll find page after page... after page, of disatisfied customers. They're just not being put in the spotlight by the media.
Associatedly, I totally disagree with you about the media being reluctant to take on Apple's image. In fact, Apple bashing seems to be a favorite sport of the Financial Media. Perhaps this is why the "biteback," from Apple users is so fierce. They know that there are tons of other brand junk in service out there that's not getting reported on.
Bottom line Doug, is that probably 50% of users are periodically having cellphone issues. It would really be fair if you and other reporters would add some breadth to your fingerpointing.
Thanks for listening,
Veronica
8-18-2008 @ 10:45AM
John S. said...
A major problem with the iPhone's new 2.0 software (apps crashing the phone; insanely long backups/restores) gets absolutely no coverage in the media. It's currently one of the longest threads on Apple's Support forums:
http://discussions.apple.com/thread.jspa?threadID=1600894&tstart=15
8-18-2008 @ 11:01AM
realitybites said...
I use 2 cell phones, each from a different carrier and interestingly enough, neither one is perfect all of the time.
I carry both phones so I am accessible for my clients that need to speak to me, since for me, accessibility is key and no carrier's signal works-all the time-everywhere.
Which brings me to my point.
You, for some reason, don't know that.
I suspect you don't know alot about technology but I digress.
Even when you make a valid point, you do it in a disingenuous way, it's as if you have a hard-on towards Apple.
All of your columns seem to have a "Chicken Little" point of view when it comes to Apple.
It's all bad news, all the time.
Even good news gets spun in a negative way.
You've become the Fox news of tech blogging
My guess is that whenever credibility you had in technology is long gone.
You've reduced your column to mid morning comic relief.
8-18-2008 @ 11:09AM
dave said...
There has been some posts of dropped calls but we don't know the real numbers are. Apple hasn't said anything, iphones are still selling well.
The Nomura Analyst has been VERY WRONG on Apple Tech before. In 2007 they claimed that iPhone screens would FAIL in 3 to 6 MONTHS. In the past Nomura has also been charged for stock manipulation by the Japanese Government.
Tech Trader Aug 10 2007 :
"research report from Nomura International analyst Richard Windsor that raised questions about the durability of the screens on the iPhone. He noted that there are reports that some screens have developed “dead spots".
"According to Marketwatch, Windsor wrote in a note today that the iPhone screen uses a chemical deposition process to provide touch sensitivity based on heat. The international property rights for this technology, he said, were purchased from a bankrupt Finnish company that was trying to make a similar device. But according to Marketwatch, “that company encountered the
problem that with extensive use, the film would begin to degrade and the screen would lose its sensitivity. Windsor said the problem typically manifested itself within three to
six months."
_____
But of Course the iPhone does NOT use Heat Sensitivity. There is NO film. And of the millions of iPhones in use they hasn't been one "heat sensitivity" failure. Iphones use pressure capacitance technology.
For a 'research' firm like Nomura to make an error like this before when the information (diagrams and specs) of the iphone is easily available on the web shows the sloppy 'research' Nomura does and yet writers all over the net from Marketswatch, to Businessweek still quote them without MENTIONING THEIR PAST EPIC ERRORS is disturbing.
Nomura's Heat Sensitivity claim caused Apple stock to NOSEDIVE and now that apple is UP, here is Nomura again! And blogs endless repeat their claims without substantiation.
Note also that NOMURA has been ACCUSED OF STOCK MANIPULATION by the Japanese Government.
New York Times:
"In the most serious accusations leveled in Japan's financial scandals, the Nomura Securities Company, the world's largest brokerage house, was charged today with violating Japanese law by manipulating customers into a flurry of buying that sent the price of a major stock soaring briefly
two years ago.
The charges were made in Parliament today by the Finance Minister, Ryutaro Hashimoto. He effectively accused the firm of running a scheme that left scores of customers with heavy losses but benefited a select few -- including one of
Japan's top organized-crime bosses -- after the stock collapsed. It was the first time in this country's recent financial scandals that a brokerage house has been charged formally with breaking the law."
8-18-2008 @ 12:40PM
Beltway Greg said...
Doug,
Great job. You've added much and your insightful research is to be admired. Keep up the good work. BTW, care to make a wager on the share price of Apple say on Dec. 31, 2008?
To quote Dave Chappelle as Rick James, "Darkness, darkness is upon us." No, just another post from Doug.
Beltway Greg
8-18-2008 @ 2:15PM
Sheldon L said...
A Survey of 1 -- I asked my 15 year old about his new phone and he reports no problems.
8-18-2008 @ 3:53PM
Beltway Greg said...
Sheldon,
Thanks for coming over to our side; the side of hope and light.
IPods for all y'all.
Beltway Greg
8-18-2008 @ 6:17PM
George Hajian said...
I have tried today not to comment on your 'brilliant' article... but I just couldn't help!!!
You talk about the media being reluctant... don't you get it? they know very well that some people complain about any small thing that happens.. check all other mobile manufacturers and other discussion boards.
I think Beltway Greg and yourself make a great team... I still think Microsoft should support you guys.. or may be Sprint?
The truth is when someone comes up with some great innovation, they get bashed by inferior people.
Read Veronica's comment again and again!!
8-18-2008 @ 6:53PM
Sheldon L said...
No sides Greg. Doug is one of my more respected colleagues.
Just calling 'em like I see 'em...just like you and Doug. He is just reporting, and perhaps trying to temper all the Fanboys...
Peace brother
8-18-2008 @ 10:16PM
Beltway Greg said...
I don't think George understands sarcasm. Back to Literary Criticism 101 for you young man. Anywho, was in NYC today and dropped by the Mecca on 5th Ave. I did my own informal poll and asked folks about their service with the IPhone. Only one out of about 20 reported any problems. I asked one guy coming back on the train and he didn't seem to understand the question. BTW, I always lose reception with yea old Blackberry many times along the train corridor from NYC to DC.
You guys are being foolish. Apple is hardly the company that disappoints investors or the consumer. Macro forces are providing some strong headwinds. I heard a rumor about a banking giant that I won't repeat. Apple to $200 is easy money. $260, my target this year, will be tough, but if the Feds step in and nationalize Fannie and Freddie we could be off to the races.
A beautiful moment will soon arrive when we reach $204. At that point everyone who has ever owned and not sold will be in the green.
How about them Apples.
Beltway Greg
Still Delusional
8-18-2008 @ 11:45PM
KenC said...
This Nomura analyst is not credible. His previous expose on iPhone tech issues was that the iPhone was experiencing "deadspots" cause it used a heat-sensitive coating on its screen, which wore off after 6 months, leading to huge recalls. Of course we found out that was TOTAL RUBBISH, as anyone with half a braincell knew that the iPhone used a capacitance sensor for its screen. Anyone citing this Nomura analyst without qualifying his background, shows almost as little credibility.
Maybe, those mainstream press who have been slow, have exercised some judgement based upon the credibility or lack thereof, of the source source of the rumor.
Now, if I point out the lack of credibility of the Nomura analyst, which is a FACT, does that make me "rabid", or is this just a strawman argument. If you don't agree with Doug McIntyre, then you're a "rabid" fanatic, who attacks the media. What nonsense. Analysts and media are responded to, when they get the FACTS wrong. Get em right, and no one will bother you. Get em wrong, and people will point out your mistakes. Nothing to do with "rabid" behavior.
And, your contention that Apple is obsessive in its desire present itself as "perfect" is unsubstantiated with any facts. Did not Steve Jobs send out an apology after lowering the price of the original iPhone $200, last year? Did not Steve apologize for the Mobile Me problems? Those are FACTS. Where are yours?
8-19-2008 @ 10:09AM
Beltway Greg said...
Just released, Apple customer service is ten points higher than its nearest rival Dell. No doubt though, Doug will write about the exploding IPod scandal in Japan. Don't you think this sounds a little odd? I am man who believes in the power of numbers and probabilities. Why is this occurring disproportionately in the Land of the Rising Sun? Methinks a scandal is afoot. I heard that in the seventies and eighties that if you purchased an American made car in Japan, you risked the Japanese version of a tax audit. Given the protectionist and cozy nature of government and corporate ties in Japan what better thing to do than try to defeat a product that cannot be defeated? It must be a source of great discomfort for Sony to realize that they once owned the portable music market and now they are seen as little more than an cultural artifact of the 80's along with Kelly LeBrock, The Brat Pack, and a Flock of Seagulls. Maybe embarrassing enough to cook up an IPod flambe?
Beltway Greg
And yes I still have a crush on Alley Sheedy. Ally give me a call all is forgiven.
8-19-2008 @ 9:54PM
Veronica said...
It is odd that all thhese issues emanate from the land of the "Setting Sony"!
Thanks for listening!
Veronica
Oh yeah... make that two for Alley Sheedy, Greg!
8-26-2008 @ 5:36PM
George Hajian said...
Hmmm.. Doug?
Did you have a chance to read the report from wired regarding upload/download speeds? Laugh...
I would've loved it if Apple was able to sue people for defamation! LOL