Apple share price unscathed by iPhone "debacle"

Despite widely reported problems with the antennae design of the iPhone 4, most analysts say demand for Apple shares and iPhones remains high, according to the Financial Times.

Steve Jobs, Apple chief executive, attempted to quell consumer discontent on Friday by offering to give every owner a free case to prevent the two antennae from being bridged by users' hands.

He said Apple would refund those who had paid for a case already and would give money back to anyone returning their iPhone.

But Jobs has angered competitors by saying they have similar problems, naming Samsung, HTC and BlackBerry maker RIM.

"Apple's attempt to draw RIM into Apple's self-made debacle is unacceptable", RIM co-chief executives Mike Lazaridis and Jim Balsillie said in a statement.

They said claims by Apple were a deliberate attempt to distort the public's understanding of an antenna design issue and deflect attention from the difficult situation Apple faces.

But some analysts predict Apple will still sell up to 71 million iPhone units in 2011 and third quarter sales will beat expectations of $14.6bn.

If Apple's margins can survive the antenna debacle, the cost of supplying cases and a severely stretched supply chain, iPad accessories sales will restore balance, analysts said.

This story was first published by Computer Weekly

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