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In June 2007, Apple's chief executive, Steven P. Jobs, introduced the iPhone, which
instantly became one of the most talked-about consumer products ever. Thousands of customers lined up to be the first to buy the phones, which featured computing and Wi-Fi capabilities, along with a crisp, computer-like display on an innovative touch screen. Rivals rushed phones with similar features onto the market.

Three years later, seeking to fend off intensifying competition from Google and others in the smartphone business, Apple introduced a new version of the iPhone that includes a front-facing camera for video chats.

The iPhone 4 is faster and thinner than previous models, with a crisper display and a more angular look. It has a 5-megapixel camera and can shoot and edit high-definition video.

But discussion of the phone's new features was drowned out by a ruckus over a flaw in the phone's antenna that astonished many observers of a company that obsesses over every detail of its products.

Soon after its release, iPhone 4 users began complaining that when they held the phone a certain way, the bars indicating signal strength dropped off sharply. After weeks of silence, Apple acknowledged that there was a problem, but insisted that it was merely a software bug that exaggerated signal strength by displaying too many bars — indicating stronger reception than there ever was.

Consumer Reports said it would not recommend the iPhone 4 because of a hardware flaw with its antenna that sometimes resulted in dropped calls. The independent consumer magazine also cast doubt on Apple's claim that the problem lay in the software.


At a news conference at Apple's headquarters on July 16, 2010, Mr. Jobs acknowledged that there were issues with the antenna, which wraps around the outside of the device. Although, many expected a mea culpa from Mr. Jobs, he instead turned the iPhone 4's antenna problems into a marketing event.

He insisted that the problems affect all smartphones — a claim that was challenged by some Apple competitors. And he accused the news media of exaggerating the scope of the issue, saying customers and reviewers were thrilled with the new phone.

Mr. Jobs said that to put the controversy behind it, Apple would give free bumpers — cases that wrap around the rim of the phone and seem to reduce the problem of dropped calls — to all iPhone 4 buyers who want them.

Some marketing experts said Mr. Jobs had been effective at deflecting a potentially damaging crisis and predicted Apple would suffer little damage from the antenna ruckus.

Perhaps no company could live up to the near-mythic reputation Apple has developed. But it still has enormous good will and a huge base of devoted customers willing to give it the benefit of the doubt. In that context, the antenna flaw is probably less important than the flawed strategy of addressing it in the first place.

Analysts said the focus will now shift to Apple's earnings performance, and they see only minimal fallout of the antenna issue on Apple's profits.

Apple likes to maintain tight control over what programs can appear on the iPhone — a task that became a little bit harder on July 26, when the Library of Congress, which has the power to define exceptions to an important copyright law, said that it was legal to bypass a phone's controls on what software it will run to get "lawfully obtained" programs to work.

The issue has been a topic of debate between Apple, which says it has the right to control the software on its devices, and technically adept users who want to customize their phones as they see fit.

Apple has also said that altering the phones encouraged the pirating of applications, exposed iPhones to security risks and taxed the company's customer support staff. But iPhone hobbyists say they simply want to have free range to use certain features and programs on their phones that Apple has limited or failed to offer.

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