Apple iPhone 4 Recall Could Cost $1.5 Billion: Analyst
Sacconaghi estimates that the more likely option is that Apple would offer customers a free bumper case, which currently retails for $29. That would cost just $1 per unit.
Looking long-term, Sacconaghi further says a more troubling consequence is Apple's response to the antenna problem. He speculates that "these issues may, over time, begin to impact consumers' perceptions of Apple, undermining its enormous prevailing commercial success." Another analyst, Gene Munster of Piper Jaffray, estimated Tuesday that a fix from Apple could impact its operating income by 1%.
On Tuesday, Apple shares closed down 2.13%, on a day the Nasdaq composite jumped 1.99%.
And while some believe a recall of the iPhone 4 is inevitable, others won't hold their breath.