Apple (AAPL) could solve the iPhone 4 antenna brouhaha in a split second: start giving customers for free one of those $29 bumpers intended to protect the phone.
Kaufman Bros. analyst Shaw Wu asserts in a research report today that the antenna issue, in which some people are reporting reception problems when they hold the phone in a certain way, has been completely blown out of proportion.
“We do not think that the antenna issue is that big of a deal as most users opt for a case anyway; in the worst case, AAPL discounts its $29 case or includes one for free, neither of which are likely to impact financials materially,” he writes. He contends the company is on track to sell 1.5-2 million phones in the first few days of sale, well ahead of the 1 million phones sold in the first few days the 3GS was on the market last year.
Meanwhile, Piper Jaffray analyst Gene Munster thinks the company will sell 1-1.5 million phones in the first few days, but adds that the actual number is largely irrelevant. “Apple is tapping into the global consumer spending sweet spot, mobile, and as a result iPhone numbers are going higher in the coming years,” he writes.
Munster also notes that a Piper survey of 608 iPhone buyers yesterday in New York, Minneapolis and San Francisco found that 77% of them were current iPhone owners who were upgrading, up from 56% repeat buyers last year, and 38% in 2008. Writes Munster: “Apple is effectively building a recurring revenue stream from a growing base of iPhone users that upgrade to the newest version every year or two.”
AAPL is down 80 cents, or 0.3%, to $268.20.
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