18 Aug 10

Apple and ‘Antennagate’

Making the best of a bad situation, by Jade McKerracher

The media dubbed it ‘Antennagate’; others called it the ‘death grip’ problem. Whatever the terms, the recent reception issues with the iPhone 4 have been well documented.

What is perhaps less talked about is the fact that the technical glitch with the iPhone 4 created an opportunity to market a new product. The ‘Bumper’ – a protective case designed to alleviate the reception problems when the iPhone 4 is held in a particular way – was born. In true Apple style, the Bumper was marketed as a chance to ‘add a touch of style’ to the iPhone 4 by ‘dressing it up’ in a variety of colours.

Although marketing off the back of a fault is clearly not an ideal strategy, the ‘death grip’ case shows Apple’s astuteness and opportunism in making the best of a bad situation. Referring to Apple’s chief executive Steve Jobs, Michael Helft of the New York Times said: “he turned the iPhone 4’s antenna problems into a marketing event”. Of course, this example also highlights Apple’s hold on consumers, in having a monopoly on the resources needed to rectify faults if and when they occur.

So, once again, the cliché that ‘every cloud has a silver lining’ rings true and Apple have made a clever move in the short term. However, as Mike Abramsky of RBC Capital observes, the effect of ‘Antennagate’ on Apple’s long-term reputation remains to be seen.