Apple stock slides on iPhone 4 signal woes
Apple stock slipped by as much as 4% yesterday after a damning report on the iPhone 4’s antenna problems sparked speculation the device could be recalled.
Shares in the company fell by up to 4.2% in a volatile day of trading yesterday, after influential independent product reviewers Consumer Reports refused to recommend the iPhone 4 because of the reception issues, but recovered slightly to close just 2.13% down before rebounding a further 1% in after-hours trading.
The slide was caused by market fears of a product recall analysts told Reuters.
JP Morgan said the negative review from Consumer Reports could eventually have an impact on sales, regardless of whether the firm issued a recall or not.
However, Bob Egan, global head of research and chief analyst at the Tower Group, slammed Consumer Reports’ verdict on the iPhone 4, claiming its research was unscientific, CNET.com reports.
Egan speculates AT&T – Apple’s US carrier partner – could also have a hand in the signal problems, adding that it remains unclear whether users are “detuning the antenna or detuning the receiver itself,” CNET said.
Apple last week said a software glitch causes its latest iPhone to display the wrong signal strength if users hold the device by the bottom-left corner, and pledged to issue a patch to correct the problem.