Apple’s antenna answer: Very small user impact, free cases for all, regardless

Saying he felt the problem had been “blown out of proportion,” Apple CEO Steve Jobs today addressed growing concerns about iPhone 4 antenna problems by providing data he claimed demonstrated its relatively minor impact on users – while also detailing a new software release and a free-bumper-case-for-all program that he said would alleviate the problem.

Whether that approach will slow down the evolving storm of criticism of the device – including calls in some circles for a product recall – remains to be seen. But for now, on a summer Friday, Apple has made its best, first effort to head off this crisis at the pass.

Jobs gave a 15-minute presentation to kick off this morning’s event, starting with the good news: Apple has sold 3 million iPhone 4 devices in three weeks and, he claimed, it has the highest user satisfaction rating of any iPhone release.

That said, when problems with the antenna arose – which he dubbed "Antennagate" – Apple engineers began looking into not only solutions but the root of the problem, Jobs said. Here’s what Jobs claimed they found:

- Holding a phone in a certain way to get a drop in signal strength happens not only with the iPhone but other devices, he claimed, including various BlackBerry and Android devices

- Looking into customer service records, only 0.55% of iPhone 4 users logged a complaint about real-world antenna issues

- AT&T return rates for the device are running at 1.7%, less than the 6% for the iPhone 3

- The iPhone 4 does drop more calls than the iPhone 3, but less than one additional call per 100 calls made

Jobs then detailed Apple’s approach to dealing with what he claimed was a relatively small problem: one, a new software release, 4.01, that he said would fix problems with how the iPhone displays the bars representing signal strength; and two, a plan to give every iPhone 4 user a free bumper case that helps alleviate any antenna blockage. If users already bought a bumper, they’ll get a refund, Jobs said.

Finally, Apple extended its return policy on the iPhone 4, allowing any user to return the phone for a full refund within 30 days of purchase.

As for next steps, Jobs side-stepped the idea of major design changes to the iPhone in future versions, saying he didn’t know what the next antenna design would look like.