UPDATED:Apple press conference: 3 million iPhone 4's sold and free cases for all

Finally addressing the "death-grip" issue engulfing the iPhone 4 since its launch 22 days ago, Steve Jobs says that Apple will give you some choices on how you wish to proceed. First, we would be amiss if we didn't address the actual problem. Calling the issue "Antennagate", Jobs made a point of saying that Apple was able to replicate the "death-grip" on other phones like the BlackBerry 9700, the HTC Droid Eris and the Samsung Omnia II. He also said that "phones aren't perfect" and the CEO brought out some statistics that seemed to defy the big hoopla that has followed the iPhone 4 since word first spread about the device's connectivity problem. According to Jobs, just .55% of iPhone 4 owners called AppleCare to complain about the antenna and  only 1.7% of those who bought the phone have returned it. To put that in perspective, 6% of iPhone 3GS models were returned in the first 30 days after purchase. He did agree that the newest iPhone dropped more calls than the 3GS, but his theory is that 3GS buyers were using the case they had bought for the iPhone 3G. As far as what caused the connectivity problems, the executive says, "physics". He also said that the problem is based on an incorrect algorithm that made the phone appear to have more bars than it really should have. When the spot in between the antennas was touched, the faulty software made the drop in signal strength look far worse than it was. Apple's software upgrade yesterday should make the number of bars on the phone a more realistic picture of the actual signal strength and Jobs recommended that all iPhone 4 owners download iOS 4.0.1.

So what will Apple do for iPhone 4 buyers? If you purchased the phone before September 30th-which means this applies to everyone-you can head over to the Apple web site starting in the latter part of next week, and request a free case. If you already purchased a bumper from Apple, you can request a refund. Or, you can return the phone within 30 days of purchase, and if its unharmed, you will get a full refund. Jobs also called the report from Bloomberg that said an Apple employee gave him an early heads-up on the problem "a total crock" and he has asked Bloomberg to come up with evidence that the story is true, which they have not been able to, so far. He also noted that 3 million units of the iPhone 4 have been sold in the first 3 weeks and he has received e-mails from 5,000 users telling him that the phone works correctly. Finally, he added that the proximity sensor-which has been the source of some complaints-will be fixed with the next update and also noted that the white version of the device will ship in limited quantities starting at the end of this month.

So, iPhone 4 owners, are you satisfied with the response today from Apple? Will you opt for the free case or return the handset? And we still have one big question left to be addressed, will this be considered enough of a "fix" so that Consumer Reports can go ahead and rate the iPhone 4 ?

Apple iPhone 4 Specifications | Review

source: Engadget


*UPDATE*
Just in case you want to see all of Friday's press conference, Apple has posted it on its web site for one and all to watch. Just hit this link and get ready for the drama.