Hardly a day goes by without bloggers speculating on the date Apple, Inc (AAPL-NASDAQ) will put RIM out of business. Blogs trot out daily puff pieces extolling the iPhones supremacy, but Apple has has taken a few hits of late. Yes, it seems making a phone as bulletproof as a Blackberry is not so easy after all.
Eighteen months ago I pointed out the looming battle between the two titans, and highlighted the challenges Apple might face in building a reliable phone.
Of course I had some help from Research in Motion’s (RIMM-NASDAQ) Co-CEO:
February 22, 2007
“Apple has done us an enormous favour by saying you should expect music on your cellphone,” he said. “[But] I think it’s 10 if not 100 times harder to do the communications aspect onto an MP3 player than to do the mass media player onto a communications framework. I think we’ll absolutely nail it before some new entrant comes even close. You know, everyone’s brave in the locker room. Let’s get it done.” Jim Basillie, RIM Co-CEO
Cupertino has a problem on its hands; this story picked up legs into the weekend:
The ranks of unhappy iPhone users continued to swell at the weekend as Apple customers complained about problems maintaining a signal on the company’s new 3G handset.
Over the past few weeks, customers have flocked to Apple’s online support forums to complain about weak or fluctuating signals leading to dropped calls and long download times.
“I have had my iPhone since this past Sunday,” wrote one iPhone customer on an Apple support forum last week.
“The reception issues began immediately with 3G flip-flopping between ‘no signal’ and up to four bars – but usually hovering between none and two.” Not all iPhone users are reporting problems but a growing number of anecdotal reports from around the world indicates that the phenomenon may be widespread.
Apple has yet to publicly acknowledge the problem, compounding the frustration for some users.
“It amazes me how widespread this problem obviously is, and how little AT&T, and especially Apple, has done in acknowledging and addressing this issue,” said another user on an Apple forum.
Speculation about the cause of the poor reception thus far has centred on the iPhone’s Infineon chipset.
“We believe that these issues are typical of an immature chipset and radio protocol stack where we are almost certain Infineon is the 3G supplier,” wrote Richard Windsor, an analyst at Nomura.
“This is not surprising as the Infineon 3G chipset solution has never really been tested in the hands of users,” he said.“Some people will not experience these problems as it is only in areas where the radio signal weakens that the immaturity of the stack really shows.”
If Mr Windsor is correct, that means Apple may not be able to fix the problem with a simple software update. FT
Of course this news was circulating last week, and surely played a part in Friday’s selloff in Apple’s stock. Another attempt to clear the $180 level and assault the old highs fizzled. But widespread publicity of the issue might take the stock lower early this week, setting up another buying opportunity.
The folks at RIM’s HQ in Waterloo are no doubt enjoying a hearty chuckle. Assuming a quick fix is in the works Apple should survive to fight another day. Team Blackberry has better hope their pending launch of the Bold goes off without a hitch, never a sure thing.
If you have time to read the complaints on Apple’s website be my guest...but you might want to clear your calendar to do so, with 786 posts as of 2AM EST.
Theories abound; but Infineon’s business with Apple could be at risk if it is indeed their chipset causing the problem. Apple has to shoulder some of the blame, and get the issue resolved ASAP.
___________________________________________________
Signal gripes mount over new iPhone
FT
iPhone 3G Connection Issues Related to Software or Hardware?
MacRumors
3G iPhone Connection Problems Chip-Related?
GigaOm
-----------------------------------------------------------------------------------------------------------------------
The content contained in this blog represents the opinions of underthecounter. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position
I experienced a similar problem. When I bought my iPhone though, I first checked Got Reception? (http://www.gotreception.com) - a great resource for finding out where reception problems are most likely to occur BEFORE you lock yourself with a specific carrier.
Next entry: Checkmate: Your Move Paulson
Previous entry: The Great Debate: Inflation vs. Deflation
| © 2007 About | Contact Us | Advertising Information |
|
|
