Steve Jobs blames the media for the iPhone 4?s antenna problems, stating that Apple?s data proves that consumers were not dissatisfied with the device since the return rate was one-third of the iPhone 3GS's and that reporters made it out to be a bigger issue than it actually was. Oh, the whingeing. 

Mr. Jobs said that 0.55 percent of iPhone users called to complain about the antenna or reception problems. The Apple CEO claimed that iPhone 4 is not the only smartphone that has this reception problem.

?It's being called Antennagate ? it doesn?t seem like a good idea if you touch your phone in a certain way and the bars go down,? Mr. Jobs said, according to gdgt live?s live iPhone 4 press conference coverage at Apple headquarters in Cupertino, CA. ?But one of the first things we learned: It?s certainly not unique to the iPhone.

?We did our own testing ? let me show you an example of some other smartphones,? he said. ?First, BlackBerry Bold 9700, perhaps the most popular business smartphone ...?

Mr. Jobs showed a video to conference attendees with a BlackBerry Bold 9700 losing signal bars when gripped a certain way.

?Pretty much identical to the videos on the Web about the iPhone 4,? Mr. Jobs said. ?This is life in the smartphone world.

?Phones aren?t perfect,? he said.

Mr. Jobs then spent the next couple of minutes illustrating signal imperfections of Microsoft's Windows Mobile and Google's Android-based smartphones.

?We could have gone on and on, but most smartphones behave exactly the same way,? Mr. Jobs said.

About 15 minutes into the conference, the room of attendees still did not know what Apple planned to do about the imperfections in the iPhone 4.

Blame game
Then the blame game began. Mr. Jobs did admit that Apple was not perfect, but said that the media has definitely made a bigger issue out of the iPhone 4 reception/antenna problem than it actually is.

?It?s a challenge for the whole industry, and we?re doing the best we can,? Mr. Jobs said. ?But every phone has weak spots.

?Now, we?re not perfect: We made that very visible with a little help from some of our friends from certain Web sites,? he said.

But every cloud has a silver lining.

About a half hour after a huge PR-filled run-around on the issue at hand, Mr. Jobs finally addressed the problem.

Apple?s release of iOS 4.0.1 apparently fixes some of the bugs with the company?s algorithm. Apple recommends that every iPhone owner update to it.

Additionally, Consumer Reports stated that a bumper case addresses the issue. Mr. Jobs said that every iPhone 4 user can apply for a free case on Apple?s Web site. Those who have already bought a case can get reimbursed.

?And, if you?re still not happy even after getting a case, you can bring your iPhone 4 back undamaged for a full refund,? Mr. Jobs said. ?We are going to take care of everyone.

"We want every user to be happy?and if we can?t make ?em happy, we?ll give them a full refund,? he said.

When the press conference first began, Apple played the following YouTube video:

Quicker, better response needed: experts weigh in
So are people satisfied? Mobile Marketer interviewed industry experts that followed the live coverage at the event. Here is what they said:

Gary Schwartz, president/CEO of Impact Mobile, New York
Steve had to answer to the scathing Consumer Reports and 20 days of unchecked discussion in the blogosphere.

Apple should have addressed the issue at least two weeks ago. Now Steve had no choice but to respond defensively.

Apple usually choreographs its news conferences ? with this one, it allows the media to set the agenda.

But Steve sounded more than defensive than he had to, hiding behind the ?Made in America? line and belaboring the point that all in-market phones have antenna trouble.

Steve sees this as an inquisition ? in his words an ?Antennagate.? Yes, people have expectations from Apple. Steve built them.

Ross Rubin, director of industry analysis at the NPD Group, Port Washington, NY
It was a combination of Apple reiterating a number of statements it made in the past but this time with more visual impact showing that the issue can be evident in other handsets using other operating systems.

Apple accepts responsibility, but does not accept fault. The one key difference with the iPhone issue is that the designs of the other smartphones do not make this issue as obvious in terms of the "weak spot" that degrades the signal. This is one design issue with the iPhone 4.

Mr. Jobs also said that iPhone users, in general, were satisfied with the device but did admit that it is dropping more calls on average than its predecessor.

And so, Apple will investigate the cause so it can consider a different design for future phone antennae.

Neil Strother, Kirkland, WA-based mobile practice director at ABI Research
It seems like the whole tech world has stopped for Steve Jobs and the whole antennae issue, whether it?s Antennaegate or not.

Making phones is hard. Doing a mobile phone network and make communications work in a lot of places is hard technologically. When you have a popular product and it doesn?t work, even if it?s less than 1 percent, it shows that making mobile phones is difficult.

It?s interesting they?re getting so much heat, because you?re the perceived innovator and market leader.

In terms of the mobile marketing view, I think his straight approach is pretty refreshing and shows that it?s gotten his attention and something they have to address. I like the fact that they?re not just sending out a press release. He said I?m not perfect, which is refreshing.

Recalls are a really time-consuming, difficult thing. It?s not like an automobile where it would be life-threatening.

It seems like a recall, from their standpoint, would be a really difficult and expensive thing. I don?t know if they could solve the problem since they can?t re-engineer it quickly enough. I mean, are you going to wait six to nine months for a new iPhone 4?

I don?t think the recall made sense. It would have messed things up even further.

People have been dropping calls for years on phones. It is not the end of the world, but because you?re the darling phone maker and you have an issue, Consumer Reports exacerbated the situation.

When a consumer watchdog like that gets involved and makes a strong statement, Apple needed to do something.

Apple has learned some lessons and I give [Mr.] Jobs high marks for admitting that there is a problem and they?re working on it.

Charles Golvin, principal analyst at Forrester Research, Cambridge, MA 
I think, like there are in politics, there are three constituencies that are important here.

First are the Apple fan boys that love Apple. Second are the other guys, the ones that hate Apple and third are the independents who really have not made up their minds yet.

The second group does not matter because you can?t cure the haters.

For the loyalists, [Mr. Jobs] addressed concerns. Apple took responsibility. They are going to handle it. I was envisioning an Oprah moment there, where everyone in the audience got a bumper.

For the independents, they have to wait and see what others say about it. But Consumer Reports already said that the bumper mitigates the problem and so that helps put people?s minds at ease.

He did take responsibility and shared numbers and analysis and they have done what they think should be done to address the problems.

The devices are still flying off the shelf. Let?s be realistic. An Apple or iPhone headline gets more reads than, say, a Samsung Solstice headline. There is a target on Apple?s back and it is difficult in today?s environment to sort out what is the real scope of the problem here. They did take responsibility.

Frank O?Brien, founder of Conversation, New York
When iPhone?s first generation of phones came out and there were problems, they successfully handled the situation quickly and rewarded their early adopters with a sizable gift card.

Only time will tell how this situation will impact their brand, but it definitely leaves Apple vulnerable.

Apple enthusiasts have typically sided with the brand, but in the past, [Mr.] Jobs has responded much faster.

Twenty-two days in today?s marketplace is an eternity, and Apple?s offer for free cases could very well leave loyalists feeling like it?s too little, too late.

Scott Morgan, president of advertising agency Brunner, Pittsburgh, PA
Apple has one of the strongest brands in the world. However, at some point, as the ?underdog? takes on more of the qualities of the Big Kahuna, it becomes more vulnerable to criticism.

[Mr.] Job?s first response to the antenna problem was that it was a ?non-issue? ? that?s not how the underdog would handle the situation. They best be careful not to let ego get in the way.

In the viral world in which we live, brand reputations can turn on a dime.

Just ask BP, which just a couple months ago was largely viewed as one of the more environmentally sensitive, green energy companies.

Rick Gardinier, chief digital officer at Brunner, Pittsburgh, PA
Apple is still widely viewed as the innovator within the mobile device space.

If Apple is upfront, open and honest and provides a fix for those having the issues, I don?t believe this will have a lasting effect on their brand.

Apple has put out a few clunkers in the past ? remember the Newton and the Cube?

But, generally speaking, Apple is on a roll with several successful product launches ? the iPad being one of them ? and their fans are ?fanatics.?

It will take more than this to damage the brand in their eyes ? and I?m not sure the mainstream buyers of Apple will remember this in three months' time, as long as they avoid similar QA issues moving forward.

Toby Southgate, New York-based managing director of The Brand Union
Smart brands are making rapid progress by involving consumers in the innovation process ? get a product to market quickly, and improve and evolve that product over time as you gather live feedback from users.

Apple has demonstrated time and again that this works for them, and people keep buying their products.

This is iPhone 4 in a little over three years. IPhone 4.0 or iPhone 5 isn?t far away.

They will fix the issue, and make other improvements, and people will still wait on line to buy the next release.

Final Take

Dan Butcher contributed reporting to this story.