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9:56Hi everybody . This is Jason Snell reporting live from Cupertino at the web site of Apple ’s iPhone 4 pressure conference .
9:57CoverItLive is dynamical so nobody should have to refresh their web internet browser .
10:00Some jazz is playing as the phallus of the press get seat and arrange up their laptops .
10:03The Town Hall theatre in 4 Infinite Loop is only about half full , probably due to the very shortsighted notice for this effect – we heard about it Wednesday even and many of our easterly compatriots could n’t make the trip .
10:04“The iPhone 4 Antenna Song ” is act
10:04It ’s a YouTube video
10:04Here ’s the liaison
10:05Pretty funny . you could watch the TV for yourself . But interesting : It essentially fight down the iPhone 4 and says the medium has made too bountiful a tidy sum about it . Subtext ?
10:06“If you do n’t want an iPhone 4 , do n’t buy it / if you do n’t like it , bring it back … but you know you wo n’t ”
10:06Steve Jobs come forth
10:0615 minute presentation , Jobs says .
10:07“You know , we ’re not perfect . And phones are n’t pure either . But we want to make all of our users happy . And if you do n’t have sex that about Apple , you do n’t know Apple . ”
10:07“So we ’re die to talk about how we ’re going to do that today . But before we go into that , I desire to talk about the job and about the data we ’ve got ” that informs us and help us make our exploiter glad .
10:07“We have sold well over 3 million since we launch it 3 week ago ”
10:08PC World namechecked as listing iPhone as # 1 phone
10:08Highest customer satisfaction of any iPhone or smartphone ever
10:08However , we get getting some reports of people get some issues with the feeler system , which is very advanced …
10:09We hear about this 22 days ago and have been working our butts off
10:09It ’s not like we ’ve had our header in the moxie for 3 calendar month ; it ’s been 22 days
10:09And Apple is an technology driven company . We have some of the finest engineers here in the earth , in the area that help us produce our products
10:09So we require to find out what the real problem is before starting to work on solutions . So we ’ve been work our butts off to come up with existent solution
10:09And today we require to apportion with you what we ’ve study .
10:10Doesn’t auditory sensation like a serious idea to spellbind your phone and suffer signal . But it ’s not singular to the iPhone 4 . you may go on YouTube and see videos of other phones doing this , but we needed to do these tests ourselves
10:11Blackberry Bold 9700 , made by RIM . Perhaps the most popular smartphone in clientele . telecasting demonstrate bars omit from 5 to 1 rapidly when putting it in a grip .
10:12Next HTC Droid Eris . Starts off at 4 bars , traveling bag , then goes down to 2 stripe . The wait in bar cliff is base on an algorithm , phone by phone .
10:12Samsung sound , same deal , bag in the right spot , the stripe go down .
10:14Jobs : “ We could have function on and on with another 5 or 6 telephone set . Most smartphones behave incisively the same way . Now these phones were tested in area of relatively weak signal military strength , as other tester have report . This is animation in the smartphone humans . Phones are n’t perfect . ”
10:14It ’s a challenge for the whole industry , and we ’re doing the good we can , but every earpiece has watery point .
10:15Now , we ’re not perfect . We made it very seeable . What we did was , “ X marks the spot , ” put a beautiful line in the stainless blade that says , here ’s where you bear upon it , everybody !
10:15And we had incorrect bar , so when it did drop , the fall looked far more ruinous than it really was .
10:15Our choice was to commute the bar algorithm , which we put out yesterday .
10:16Other smartphone makers make up one’s mind for themselves about how to do this . But this happens to all phones . We have n’t found a way around the laws of purgative … yet .
10:16Photo of a guy in a chair surround by various object , testing phone in massive shielded room at Apple
10:1717 anechoic chambers . $ 100 million investment . 18 PhD scientist and engineers on our faculty . And they do some very advanced feeler design .
10:17And so the iPhone transmitting aerial went through all of this . We be intimate that if you gripped it in a certain way , the BAR were going to go down a bit , like every smartphone . And we did n’t think it would be a big problem .
10:18So speech sound are n’t arrant , and it ’s a challenge for the entire manufacture . And we are hoping to make some donation
10:18We have determine : Smartphones have weak spots . You will unload response .
10:18Next , we have get some very interesting information from AppleCare . Whenever anyone calls in with a trouble , it ’s lumber and we have the statistic .
10:19And we ask , what ’s the pct of iPhone 4 users who have called AppleCare with any egress about feeler or reception , or anything nigh .
10:190.55 % of all iPhone client have called AppleCare with an transmitting aerial issue .
10:19So this does n’t really jive with what you read about this problem .
10:20AT&T return charge per unit . Like Apple , AT&T has a “ buyer ’s compunction ” return period . multitude retort phones for all sorts of reasons . Reception is n’t what they hopped , they test it and do n’t wish it .
10:21AT&T , large iPhone reseller in the reality , liken to iPhone 3GS , which has been the best sell smartphone in account .
10:213GS replication rates during this catamenia last year were 6 percent , which was below the industry average . For iPhone 4 , it ’s 1.7 % .
10:22We’ve get the gruelling data . It ’s less than a third the return rates of the iPhone 3GS .
10:22AT&T call drop rates . Gave them to us 3 day ago .
10:24AT&T will compare iPhone 3GS drop versus iPhone 4 . Additional calls dropped per 100 calls compared to iPhone 3GS . Even though we think the iPhone 4 ’s antenna is superior , I must describe to you that the iPhone 4 drops more calls per 100 than the iPhone 3GS . That ’s what the data says .
10:24But it ’s less than 1 call per 100 than the 3GS .
10:25I have a hypothesis : When the iPhone 3GS came out , it was the same shape as the iPhone 3 G , so people could use their old cases .
10:26And multitude could use old lawsuit already in stores , so people could purchase cases when they buy the phone .
10:26So iPhone 4 , radical newfangled intention , not many cases , modified provision of bumpers .
10:26(Jobs say that ’s his possibility , but does n’t love if it ’s related , and they ’re looking into it )
10:28It ’s very severely , when we face at this information , not to conclude that there is a problem . But it ’s a problem regard a small percentage of users .
10:28I’ve get thousands of e-mail from users who say there ’s no job for them .
10:28But , having said this , we care about every user , and we ’re not going to stop until every one of those is well-chosen .
10:28But I think it ’s of import to translate the scope of this problem . Because the data leads you to the conclusion that it ’s been blown so out of proportion , it ’s incredible .
10:28I have intercourse it ’s fun to have a story , but it ’s less fun when you ’re on the other end of it . ( laughter )
10:28Let me say you what we ’re give way to do .
10:29First think , we ’ve released iOS 4.0.1 , which fixes the wrong formula for legal community and there was a nasty Exchange hemipteran , and that ’s fixed too .
10:29We recommend that every iPhone owner update to it .
10:29Second , a lot of people have told us , the bumper solves the signal strength problem . Why do n’t you just give everyone a case ?
10:29Okay . Everyone will get a gratuitous case .
10:30Refund if you buy a Bumper .
10:30For every iPhone 4 purchased through September 30 .
10:30But . We ca n’t make enough bumper . So what we ’re going to do , is germ some other case and give users a option of cases . And they ’ll be capable to pick one .
10:30Apply on Apple site starting late next week . Pick a case , soar , we ’ll send it off to you . That simpleton .
10:31And if you ’re still not felicitous , before or after you get a complimentary pillow slip , you’re able to bring your iPhone 4 back undamaged within 30 twenty-four hours for a full refund .
10:31No restocking fee or anything . We want to take care of everyone . We desire every user to be happy .
10:31“Does that make sense ? ”
10:32(Now , some other update for us … )
10:32Tracking some problems with the proximity sensor , and we ’re work on solutions , and we ’ll try on to get it fixed in the next software update .
10:32White iPhone 4 shipping end of July . Quantities trammel at first , ramping up .
10:32And on July 30 , we are go to bring the iPhone to 17 more land – the same 17 we talk about before with the omission of South Korea
10:33In ending , I ’d care to just kind of give you a feel of what we deal about and how we control and how we make decisions .
10:33We love our user . We really know ’em . And we try very surd to storm and transport them .
10:33We work our asses off for them . And it ’s great . and we have a blast doing it .
10:33And we make some pretty interesting products for them . mac , ipods , iPhones , iPads , Apple TV , App Store , Mac OS X , iLife , iWork , Final Cut …
10:34What motivates us is to have them love them . We lie with our user . And we work out very intemperately to surprise and delight them with these products . We also connect them with bang-up apps and developer in our App Store and substance through iTunes .
10:34We’ve ramp up 300 Apple retail stores for them , with the best buying experience in the world and the good ownership experience in the human race .
10:35We do all this because we love our exploiter . When we fall light , we assay harder . We pick ourselves up , reckon out what ’s incorrect , and we judge harder . And when we succeed , they reward us by staying our users , and that makes it all worth it .
10:36So that ’s what drives us . When we have problems , and mass are criticizing us , we take it really in person . Maybe we should n’t . possibly we should have a wall of PR multitude celebrate us aside from it , but we do n’t . We all read those stories . And we care .
10:36We’ve been attempt to sympathise this so when we solve it , we really solve it , not slap a dance band - aid on it .
10:37The trouble here is , Smartphones are circumscribed , we made ours very visible , some multitude chose to demonstrate it , we screwed up with the display of the bars . So we are move over everyone a case and if you still have a problem , we ’ll give you a full repayment .
10:37But the datum support the fact that the iPhone 4 is the unspoilt smartphone in the world , and there is no “ antennagate , ” there is a challenge for the entire smartphone industry someday to improve so there are no watery post on any sound .
10:37We love our customers . And we ’re going to attempt to take charge of every single one .
10:38Jobs inviting up Tim Cook and Bob Mansfield to link up him on stage for Q&A
10:38first Q , how ’s your wellness ? Jobs : I ’m o.k. . I was well earlier this calendar week , on holiday in Hawaii . But I thought it was important to come back for this . I ’m fine . Thanks .
10:39Q : Are you think any changes in the feeler innovation of succeeding iPhones ? A : We ’ve been kind of preoccupied with this . We ’re moderately glad with the antenna design than the iPhone 4 . It ’s a better antenna than the 3GS in almost every way . We wave a red flag in front of a bull by put the “ spellbind me here ” pattern and made it very obvious .
10:40So I do n’t know what our next antenna intent will be . Maybe our wizards in the antenna lab will get along up with something better . But we ’re not feeling that this is a giant problem we demand to unsex .
10:41Q : Is this a public relations job ? Should Apple have had more iPhones in more script , earlier ? A : Well we did , and we do now , and most people are n’t see it . If we did this all over again , we ’d seek to fall up with some mitigation , but so far nobody in the diligence has been able to do it .
10:41Q : I ca n’t do the death grip here . A : WE’ve get down strong signal here . We have AT&T and Verizon cell site on campus .
10:43Q : Ryan from GDGT . you’re able to cause the signal drop with one finger , not a whole grip . A from Mansfield : On any sound , your eubstance is a signaling absorber . And none of us has a walkie - talkie stylus antenna any longer … .
10:44Q : Were you told earlier ? A : You ’re referencing the Bloomberg article , and it ’s a entire crock . We talked to everyone about it . We have a great residential district of scientists . They debate everything . And it ’s healthy . The best estimation win . I ’m sure in some corner of the feeler world that was debated hotly , but if anyone had tell , look , this antenna has doubt , we ’re concerned , we would have dispatched the right masses and front at it .
10:44Jobs : Certainly what was portrayed in that full clause never buy the farm my consciousness . And I talked to Ruben and Ruben says it ’s total bullshit too .
10:46Q : Do you owe the great unwashed an apologia ? A : People say it ’s the cool phone they have ever had . But we need citizenry to be satisfied , and they can return the ship’s company . We want investor who need a long - terminal figure view , who trust us in the long run to keep introduce .
10:47Q : Is Apple a company that makes uses choose between bod and social occasion ? A : No , we are a society that like to do both . We reach very intemperately to make our products . attend at the iPod cutaneous senses . We cultivate to make it wonderfully lean , and that costs us spare , but we do it . The Retina exhibit is being widely acknowledge as the best display ever created . It bumble away every other earpiece display . And it be a little more , and we had to go really hard to take it into reality … but that ’s what we do .
10:48The iPhone 4 feeler is an exterior feeler , which does n’t habituate intimate quad , so we can summate more battery and give it a longer battery life . And there are some other advantages too . It ’s the thinnest smartphone in the world . So we seek to have our bar and eat it too . We hear to have nifty design and great carrying out . And if you take care at our Cartesian product , that ’s what we drive home .
10:48Q : AT&T programme will be refunded too ? A : Yes . AT&T is give full refund , yes . And through Apple as well .
10:48Q : And people can get out of their contracts ? A : I believe so , yes .
10:50(Missed the Q ) I do n’t cognise what there was we could have tell . possibly we could have arrange the expectations appropriately , that most smartphones have weak musca volitans . We for sure could ’ve shipped the phone with a better algorithm to calculate the bar , so it did n’t look so dramatic . But most smartphones seem to have the same characteristic as the iPhone 4 . When you grip them in a typical fashion they lose some signal strength when you ’re in a low - signal area to get with . The iPhone 4 seems no different .
10:51Right now to the best of our noesis , it ’s not possible to make a smartphone that does n’t have sapless spots . Well , I intend you could make a big one that would n’t fit in your air pocket . Some of these guy wire are making smoke now . You could make a vainglorious Hummer that you could n’t get your hand around it , but nobody would need to purchase it .
10:52But the wardrobe that ’s surrounded this . Maybe the great unwashed thought we were perfect , and they saw this as an model where we were n’t , and thought it would be fun to jump on it . Let me secern you , we are not perfect . We are human . And we make mistake sometimes . And we do n’t know everything . But we figure it out pretty fast . And we take care of our client .
10:52This is why we have the best and most loyal customers in the world .
10:53Q from Connie at Bloomberg : Why Sept. 30 for case limit ? A : We just are go to look and see , possibly we ’ll have a good idea . It ’s just a chance to say we ’ll reevaluate it in September .
10:53(Interesting , Connie G. is on the byline for the tale that was referred to as “ total bullshit ” previously . )
10:54Q from Kevin McKean at Consumer Reports : What about refund on third - party cases ? A : No , but it ’s a very diminished number of those cases that are out there . We wish it would ’ve been hire , because then there would be more cases out there .
10:55McKean : It ’s very hard to get typesetter’s case right now . If Apple had given the property of the phone to begin with , then there ’d be a bigger supply of compositor’s case . A : As a consumer electronics manufacturer , if we tell the world what our next product are go to be , they tend to block buying our current production . And if they [ do that ] , then we have a crisis and have to focus on that and stop focalise on new products … so in universal , we do n’t tell people about new products until they ’re just about ready to go .
10:55You cognize , sometimes web site buy slip prototypes and put them on the web . And we do n’t like that . But if we give things to case marketer , they have a history of put them on the web too . So that ’s what we run up against .
10:57Q from John Gruber : Do any of you carry your iPhone 4 ’s with a bumper ? A : They all bring theirs out , and none of them have a bumper . ( laughter )
10:57Gruber : I do n’t have one either .
10:57Jobs : I got an iPhone 4 and response in my house is way better , but I moderate it like this a lot and I ’ve never had a trouble with it , so I ’m thrilled . That does n’t mean other people do n’t have problems , but that ’s been my experience .
10:59Q : What have you learned ? Jobs : We always have it off how much we care about our customers . We were stunned and broken and stymie by the Consumer Reports stuff that came out this workweek , but we did n’t need that to tell us to take care of our client . The fact we did n’t say anything after a week , it ’s because we did n’t know enough . And it ’s direct us a while to get the data . If we ’d have done this a workweek and a half ago , we would n’t have had half the data that we partake in with you today .
10:59I’m sure in a few weeks we ’ll have more data . We ’re an technology fellowship . We opine like engineer . We produce poppycock like scientists and engineers . And we love it . And we think it ’s the right way to solve real , and hard , problem .
11:00I do n’t mean that ’s going to deepen at all . That stuff is just operating like it usually does , and some people have want us to run a footling faster . I do n’t think we can melt any faster . I ’ve ascertain cars in the parking lot late at nighttime , cots in some of the engineering offices . I do n’t think we could ’ve worked any intemperately .
11:01But I guess it ’s just human nature when some organization gets successful , there ’s someone who desire to tear it down . I see it happen with Google . Why are they doing that ? Google ’s a great company . Google invented all of this nifty stuff that we love to utilise . And I see them jump on us now . Would you rather we are Korean caller rather than American companies ? Do you not wish that we ’re introduce here in America ?
11:01(I assume there ’s a reference to Chuck Schumer in there somewhere.-j.s . )
11:02In search of eyeballs for websites , people do n’t care what they leave in their wake . So I look at this whole thing and say , wow . Apple ’s been around for 34 years . Have n’t we earned the credibility and trust from some of the press to give us a petty bit of the welfare of the doubt , of our motive , the fact that we ’re confident and will solve these problems . I guess we have that trust from our users , but I did n’t see that in the pressure . This thing was blown so far out of symmetry . But I ’m not going to say we ’re not at fault . We did n’t educate enough .
11:03And we painted a braggy target on ourselves . And that someone who had it in for us was going to put videos on their vane site and say , do this . So we were not innocents in this . But .
11:03Based on the datum we have , this has been so pontifical … so to put up this is going to take a few weeks , maybe . And we could use your help . We ’d wish to know , possibly you’re able to order us , can we do well at this ?
11:05Q : Possible for ironware fix for this product ? A : Right now , the State Department of affairs in this manufacture , nobody has solved this trouble . We ’d wish to be the first . Maybe . We ’ll see . But most of our customers are n’t have , and the ones who are , many of those are in test manner , duplicating what they take in on the entanglement .
11:07Q : Did you study a recall ? A : When you love your customers as much as we do , nothing ’s off the table . But the elbow room we work is to be information drive . We require to go find out what the problem are . We ’ve sent people all over this state to bring down client . I get Es - mails , “ My phone is n’t working right , I do n’t have receipt , ” I dispatch them to my engineer , they ’ve sent teams all over the country , chit-chat these people in their home . These multitude literally get a knocking at their threshold from Apple engineers with a caboodle of equipment and want to stop up it in and trial response . We ’re really serious about this .
11:07So again , that ’s who we are . And we try on to determine out the truth of the thing . And then we do whatever it take to take care of our customer .
11:07Mansfield : For the record , we told them we were occur . line : And we did n’t bash down any room access .
11:08Q about returns at Apple Stores . A : Cook says there were fewer than 3GS .
11:11Q from Josh at Engadget : study in NYT about dissimilar software system fix . Is it potential ? Or is this hardware or nothing . A : [ Job quetch about Josh ’s word-painting . ] Could we jump ahead of every smartphone by give better software on our phone ? I ’d love it . Josh : I ’m citing the Times clause . job : You wish to talk to yourselves a heap . But they ’re just making things up .
11:12Scott Forstall seem : NYT says a latent software issue between the baseband and the AP , and that ’s patently false . There ’s no latent subject . As far as , can we continue to tune ? We do that all the prison term . I would love for us to continue to work with carriers to meliorate how we moderate outcry , and we always are . But that fib about a bug is patently untrue .
11:12Jobs : One of many statements in the past few weeks that fall into that category .
11:13Jobs : We ca n’t make ’em fast enough . We are way behind demand . And likely the only thing we ’ve drive more electronic mail on other than this recently , is customers who are upset that they have to expect for their iPhone 4 .
11:13Jobs : Reminds you of the Woody Allen pic . The intellectual nourishment here is horrendous , and gosh , the portions are so small .
11:13Ben from Mashable asks : What kind of wallop do you call up this will have on the bottom line ?
11:14Cook : We ’ll be announcing Q3 results on Tuesday and will be giving guidance on Q4 , and we ’ll halt fiscal clobber till then .
11:14Hank from Marketwatch : Has there been a slowdown in sales ? Due to shortages ? Or an shock in sales in the past week ? Jobs : We were able-bodied to make up a supply before the launching day of the month , but the rivulet rates we were at were n’t 1.7 million every three days .
11:15Cook : The 1.7 was a fairly exact figure . This number is “ well over 3 million . ” Jobs : I ’m just trying to give you a feel for the fact that this is our most successful product launch and demand looks beyond what we ’re equal to of supply , and that has n’t changed . Cook : We are sell every phone we can make decently now .
11:16Jobs : John Markoff ! courteous to see you . Markoff : I ’ve had an iPhone in a hard choke off cell in SF for a long meter . I ’d care to know if the handset has any role in congestion management . freestanding from the iPhone 4 and iPhone 3 issue . Does the hatful trifle no part in the management of over-crowding ?
11:17Jobs : When AT&T wants to add a cell tower in Texas , they say it take about 3 weeks . When they want to tot up a cell column in SF , the average time to get approving is 3 years . Not all of us want mobile phone towers in our backyard , but we all want good reception . They ’ve try on to make them expect like banana trees , but still , it ’s a problem .
11:17Jobs : AT&T ca n’t expand their networks beyond a certain point unless they put up more antennas , and that can be a very long process . And I do it , because we ’re perpetually require them about SF and the bay domain , and it ’s one of the elusive situation to get approvals . Sometimes I think they should enlist the financial backing of all the iPhone drug user in the residential district .
11:19To understand Apple , one of our biggest insight came about 8 years ago . We did n’t desire to get into any byplay where we did n’t own or control the main technology . Because if someone else have it , they ’re go to amaze you in the end .
11:20And in the computer business , we think software was the most important technical school . And we made our own type O . Our big insight 8 year ago was that for most areas of consumer electronics , it was going to switch from magnanimous display or optical pickup heads for DVDs being crucial , or radios in electric cell phones , to software being the most important constituent . And we clear , we were pretty good at software package .
11:20And so the iPod really try out that to ourselves , that we could do that , and we bring that to the phone business .
11:21We really made the whole process of being able-bodied to refresh your computer software an Holy Order of magnitude easier than it was before . So we ’ve been able-bodied to frictionlessly circularise major updates for the package for the iPhone , unendingly , and have been able-bodied to fix bugs , improve public presentation , add new feature … all for free . And everyone ’s copying Apple now , but we were the first 1 to really do that in a hardheaded way .
11:21The formula we apply to count bar has been off from the kickoff . And the update for 4.0.1 , fixes it for the 4 , 3GS , and 3G.
11:23Fortune / CNBC : You ’ve been communicating more via e - mail . Can you talk about whether you ’ve shifted the manner you communicate with Apple ’s customer ? Jobs : I get a quite a little of e-mail , and I always have on some occasion replied to some of them . I ca n’t respond to a lot of them , because I ’ve sire a twenty-four hour period task . At some point masses started stake on the entanglement , which is a little rude , to be true . And now the most late phenomenon is , citizenry are making them up . So do n’t believe everything you read .
11:24I endeavor to reply to some of them just because , you know , they ’re our customers . So it ’s pretty hit and drop .
11:24Stokes from Ars Technica : Will the devoid case offer offer outside the US ? Jobs : Yes , it ’s international .
11:25Jobs : Well , thank you for come this morning . Has this helped ? Great . I wish we could have done it in the first 48 hours , but then you would n’t have had so much to write about . Anyway , give thanks you .
11:25Applause , music , and that ’s it .
11:25Thanks everyone for being here .
11:25My fingerbreadth are numb now . ð
11:26Stay tuned to Macworld for all the former on Apple and Apple intersection .
11:26Until next prison term , well morning from Cupertino , and farewell .
