The document analyzes Apple's strategy with the iPhone 4 reception issues and profiting from accessory sales. It argues that Apple intentionally designed a hardware defect to force users to buy protective bumpers. The bumpers cover the exposed antenna area that causes reception issues when holding the phone a certain way. Apple is estimated to make $25.90 profit per bumper sold versus less profit from iPhone 4 hardware sales alone. The document concludes Apple stands to make three times more from accessory sales through this forced market strategy.

1. How Applewill profit on the iPhone 4 reception issues.ArsenyLebedev B.S. PH.d

2. Theory:Apple’s (AAPL) strategy with iPhone 4 was to release a product that required a vast majority of users to purchase accessories offered officially by Apple. In order to do this, the hardware has to be defective by design.

3. iPhone 4 has documented reception issues when holding the exposed antenna a certain way.Sources:http://gizmodo.com/5571171/iphone-4-loses-reception-when-you-hold-it-by-the-antenna-band

4. http://www.pcmag.com/article2/0,2817,2365940,00.asp

5. http://tech.fortune.cnn.com/2010/06/27/the-iphone-4-death-grip-saga/

6. http://www.cultofmac.com/the-iphone-4-death-grip-is-real-but-does-it-matter/48335

7. http://www.examiner.com/x-16806-Long-Island-iPhone-Games-Examiner~y2010m6d29-iPhone-4-death-grip-a-complicated-issueFurther EvidenceSteve Jobs had connectivity issues during the keynote announcing the new iPhone.Death Grip

8. Debunked TheoryTheory: Fat fingers are the cause of reception issues. Fat fingers mean more water interference, which greatly affects RF attenuation.Rebuttal: Not all iPhone nerds are fat.Not fatty.

9. Obvious EvidenceApple released bumpers that cover the entire exposed antenna of the iPhone 4 hardware.Antenna not visible!

10. Bumper Cost & Income AnalysisApple keeps $25.90 when selling a bumperSources: Based on polyurethane and aluminum commodity prices July 2, 2010