Q: Why is Apple doing this? A: The iPhone 4 was redesigned. A steel band that runs around the phone acts as its antenna. Some people say calls disconnect when they accidentally cover a spot on the band with their bare hands. Apple says the phones don't need fixing, and people can easily avoid the problem by using a case.

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Q: Who gets a free case? How can I get mine? A: Starting late next week, everyone who bought an iPhone 4 can go to Apple's website and sign up to get a free case in the mail. Apple can't make enough of its own $29 "Bumper" cases for everyone. It will add more cases to its selection and let people choose.

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Q: What if I already bought one? A: People who already paid for a Bumper case can get a refund, though details on how to get it aren't immediately available. Those who bought cases made by companies other than Apple are not eligible for a refund.

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(Updates with analyst comment in 18th paragraph.) July 16 (Bloomberg) -- Apple Inc., looking to avoid a recall of the iPhone 4, may give away rubber cases or offer an in-store fix to address a design flaw in the newest version of its top-selling product, according to analysts.

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The company, which is holding a news conference at 1 p.m. New York time today, doesn’t plan to announce a recall, a person familiar with the matter said yesterday. Chief Executive Officer Steve Jobs may instead offer the giveaways or refunds to dissatisfied customers, some analysts said.

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“The most important thing that Steve has to do is get up there and admit there’s a problem, tell the truth, and then apologize for it,” said Charlie Wolf, an analyst at Needham & Co. in New York. “People love Apple. All they need is an excuse to come back. An apology is the way to go.” Apple scheduled the event, at its Cupertino, California, headquarters, after iPhone 4 users complained about reception problems. Some customers say calls are dropped when the device is held a certain way. Apple engineers warned Jobs last year that the metal antenna surrounding the phone might interfere with calls, according to another person with knowledge of the matter.

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The problems some customers are experiencing with with the iPhone 4's antenna have made it from a YouTube video, to tech blogs, the mainstream media, and now to the highest ranks of power in this country. On Thursday, Sen. Charles Schumer (D-N.Y.), posted an open letter to Apple CEO Steve Jobs , expressing "concern" over the iPhone 4's reported reception problems.

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Schumer, who serves as vice chairman of the Senate's Joint Economic Committee and also on the Banking, Housing and Urban Affairs Committee, writes that after reading Consumer Reports' review in which the publication identified the iPhone 4 as having a "hardware glitch," he believes Apple needs "to address this flaw in a transparent manner." He goes on to say that the nearly 2 million purchasers of the iPhone 4 may not have "complete information" about the device.

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Apple has faced a growing outcry over the antenna issue since the day iPhone 4 arrived in customers' hands in June. Some iPhone 4 owners reported that when the device is gripped in a certain way--usually if the lower left part of the phone is covered--the phone's signal weakens or disappears. Apple at first said it was a problem common to any phone and suggested customers hold the phone in a different manner or purchase a rubber case for it . Several days later Apple said the cause was actually related to software--the phone was incorrectly displaying the number of signal bars, and had been since 2007--and could be fixed with a forthcoming update.

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Apple Inc., facing complaints over the antenna reception of its new iPhone 4, will hold a press conference on July 16 to discuss the device.

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The meeting will be held at the company's headquarters in Cupertino, California, said Steve Dowling, an Apple spokesman. He declined to elaborate on what will be discussed.

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We're halfway through 2010 and it's been a banner year already for big-ticket smartphone launches, from Apple's powerhouse iPhone 4 to Motorola's mighty Droid X.

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-->Apple's bad press for iPhone 4 has started to hit Apple where it hurts: its stock price. Shares of Apple stock fell sharply on Tuesday afternoon -- down to $246.43 before a modest recovery -- and as of Wednesday morning were down about 8 percent overall from where they were on the iPhone 4's June 24 release date.

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The stock dip follows a string of bad notices for iPhone 4 that included a widely circulated Consumer Reports "can't recommend" dismissal, a class action lawsuit against Apple and AT&T, and most recently, whispers of an iPhone 4 recall.

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