1. APPLE IPHONE4 By: Jess Runge, Tom Nielsen, Zhuangzhuang Xi, and John Vizza

2. Overview  Summary of Apple/iPhone 4  Problems with iPhone4  Camera  Outside glass breaking  Signal loss  Causes of Defects  Failure costs  Preventative Measures

3. Overview of Apple  Established in 1976  Known PC development company  Expanded into more electronics  Changed from Apple Computer, Inc to Apple, Inc in 2007  iPhone released in 2007  iPhone4 released June 24, 2010

4. About the iPhone 4  Engineered glass sides, stainless steel band  Apple A4 processor  Touch screen, retina display-high resolution  5 megapixel camera, HD video capability Cost: $199 (16GB) $299 (32 GB) and up

5. Problems with the iPhone

6. Camera  HD Video works well  Camera has a few issues  Yellow cast on low-light pictures  Shutter permanently stuck shut  No recourse for customers yet

7. Breaking Glass  http://www.youtube.com/watch?v=K7- OBoDFeDY&feature=player_embedded http://www.youtube.com/watch?v=K7- OBoDFeDY&feature=player_embedded  Aluminosilicate glass 30x harder than plastic  Scratch-resistant  4.7% experienced damage in first four months  Up from 2.8% of 3GS  May replace glass (costs $199)  Apple may replace (once)

8. Signal Loss  http://www.youtube.com/watch?v=RD188LlRBGM& feature=related http://www.youtube.com/watch?v=RD188LlRBGM& feature=related  Antennas in steel around side  Hand completes circuit  Problem with every phone

9. LOW CUSTOMER SATISFACTION Dropped Calls Breaking GlassCamera Physical Design Firmware/ OS bugs Greater volume of iPhone users Design of glass Third Party Screen Cases Customer holding it incorrectly Faulty design Poor coverage from providers Causes of iPhone Defects

10. Failure Costs  Replacements for broken cameras  Free cases for antennas  More R&D  Firmware/OS patches  Replacement glass  Stocks decreased by 2.9%  Loss of loyal customer base

11. Preventative Measures  Delay release date  Relieve pressure on employees  More testing  Prototypes, experiments, etc.  Consideration of different materials  Instead of glass; maybe different suppliers

12. QUESTIONS? Thank you!

13. References  http://apple2history.org/history/ah02/ http://apple2history.org/history/ah02/  http://www.apple.com/iphone/design/ http://www.apple.com/iphone/design/  http://www.digitaltrends.com/mobile/iphone-4- problems-what-users-complain-about-the-most/ http://www.digitaltrends.com/mobile/iphone-4- problems-what-users-complain-about-the-most/  http://www.macworld.com/article/152434/2010/ 07/iphone4flashissues.html http://www.macworld.com/article/152434/2010/ 07/iphone4flashissues.html  http://www.ifixyouri.com/blog/?p=186 http://www.ifixyouri.com/blog/?p=186  http://www.digitaltrends.com/mobile/apple- shares-take-a-hit-from-consumer-reports-review/ http://www.digitaltrends.com/mobile/apple- shares-take-a-hit-from-consumer-reports-review/