New iPhone Not Working Up to Par? Here's Your Fix

On The Money-Used Mobile Phones
Marcio Jose Sanchez/AP
By Arathy S. Nair

Apple (AAPL) withdrew a faulty update to its latest operating system after many users of its new phones complained of call service disruptions, the latest in a series of glitches to mar the first week of iPhone 6 and 6 Plus sales.

Apple shares fell as much as nearly 4 percent to $97.72 in early trading Thursday, to be the biggest drag on the Nasdaq composite index (^IXIC).

At that price, the stock had lost all its gains since the launch of the latest iPhones and the company's market value declined by $24 billion.

"We apologize for the great inconvenience experienced by users, and are working around the clock to prepare iOS 8.0.2 with a fix for the issue, and will release it as soon as it is ready in the next few days," an Apple spokesperson said, according to a report on technology news website Re/code.

Apple officials weren't available immediately for comment.

Users of the iPhone 6 and 6 Plus, which started selling the new phones last Friday, complained about a drop in cellular service and inability to use the fingerprint-reading Touch ID after updating the operating system to iOS 8.0.1.

Apple issued a step-by-step guide for users to reinstall iOS 8, launched last week, through the latest version of iTunes. Its health app won't work after the reinstallation, but will be fixed in iOS 8.0.2, the company said.

Some users had complained of "sluggish Wi-Fi and dwindling battery life" after updating to iOS 8 on Twitter and Apple forums, Time magazine reported earlier this week.

The new phones also face criticism over their bendability, dubbed "bendgate" on social media and online forums, which have been abuzz with comments about how the new phones can bend when placed in back pockets or while wearing skinny jeans.

The phones' lightweight aluminum shell is more malleable than expected but this may not qualify as a design flaw, some analysts said.

Apple said Monday it had already shipped 10 million units of iPhone 6 and 6 Plus, but didn't comment on the bending reports.

Rival smartphone-makers have tried to take advantage of Apple's problems.

Samsung released an advertisement showcasing a bending phone against its own product, while BlackBerry (BBRY) Chief Executive Officer John Chen said: "I would challenge you guys to bend our Passport."

Apple shares were down 3 percent at $98.73 on the Nasdaq just after midday.

The 5 Worst Retail Data Breaches
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New iPhone Not Working Up to Par? Here's Your Fix

Affected: 56 million cards.

Duration of compromise: Five months.

Tactic: Malware was installed to skim payment card data; unclear how hackers found an entry into the company's network.

Analysis: "Home Depot's situation is not only a PR nightmare for the home improvement colossus, but it is becoming the poster child for poor security practices across the board. Based upon the enormity of their footprint and alleged poor security, I'm mystified that it took as long as it did for them to be breached. Clearly, they did not heed Target's Paul Revere moment with sufficient urgency."

Affected: 40 million payment card numbers and 70 million other pieces of customer data; 98 million people.

Duration of compromise: Nov. 30 to Dec. 15, 2013.

Tactic: Used credentials of a heating, ventilating and air conditioning vendor to get into Target's network to install the malware to point of sale systems.

Analysis: "In a nation where everything is super-sized, Target (TGT) was one of the first true big-box retailers thrust into the spotlight after their mega breach. While a number of their executive team members have walked the plank and their board is the target of litigation, and their bottom line and share price have taken a hit, the breach highlights the importance of scrutinizing every vendor's security practices – or at least looking into cyber insurance to mitigate the damage of a vendor caused breach. This was a Paul Revere moment for the retail industry. Unfortunately, recently announced retail mega breaches indicate that not enough organizations have taken it as seriously as they should have."

Affected: As many as 200 of its grocery and liquor stores and millions of cards; credit/debit account information possibly stolen.

Duration of compromise: Almost one month.

Tactic: Network access to system that processes transactions.

Analysis: "Little information about this breach has surfaced, but one can only suspect the tactic was similar to that of other big breaches -- POS malware. And according to Avivah Litan, a fraud analyst at information technology firm Gartner, when someone uses a debit or credit card, there's a one in five chance malware is capturing that information. Although Supervalu  (SVU) execs say it's not clear if account information has been stolen, scary stats like this suggest otherwise."

Affected: 3 million customer credit and debit cards (they also had a breach in 2011 where skimmers were installed on about 70 POS systems and financial information was stolen). Affected systems contained certain payment card information, such as credit/debit card number and expiration date, about both Michaels and Aaron Brothers customers. The company says there is no evidence that other customer information, such as name, address or debit card PIN, was at risk in connection with this issue, however, current automated bank systems make it all to easy to change debit card pin numbers.

Duration of compromise: Two separate eight-month-long security breaches.

Tactic: POS malware.

Analysis: "Unfortunately, in the breach lottery Michael's hit the exacta -- old-school skimmers installed in the dead of night on their POS systems did the trick in the first breach, and the now-popular POS malware scorched them for a second time -- for 3 million. Two high-profile breaches in a couple of years isn't a goodwill builder for the craft giant."

Affected: Usernames and passwords of employees and users.

Duration of compromise: Unknown.

Tactic: The origin of the breach comes from hackers compromising a small number of employee log-in credentials, which gave access to eBay's (EBAY) corporate network. EBay says it is working with law enforcement and leading security experts to "aggressively" investigate the matter. Appears to be from a phishing email.

Analysis: "Sophisticated spear phishing scams can turn even the most savvy and sophisticated employee into an unwitting co-conspirator. Comprehensive, continuous security training for all employees, implementation of tough security protocols, use of intricate passwords and rigorous outside testing and monitoring can help avoid a reputation damaging breach."

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