Analyst: Total recall of the iPhone 4 could cost $900 million

More talk around this much talked about Apple iPhone 4 antenna issues. RBC Capital Markets Analyst Mike Abramsky says that if Apple goes the route of doing a “broad repair scenario, or even a full recall” of the iPhone 4 it could cost upwards of $900 million… to which he said “Apple can easily afford it”. In a report Abramsky pointed out that if the antenna issue effects 100% of iPhone 4 users Apple has 3 possible scenarios:

1. Provide cases (Bumpers) to 3 million people would cost $45 million
2. Repair 3 million iPhone 4 handsets would cost $300 million
3. A complete recall of the iPhone 4 would cost $900 million

Apple has not confirmed that a recall is going to happen. Abramsky stated that regardless of what Apple decides to do “We expect iPhone 4 demand may rebound quickly, still outpacing supply and – along with global channel fill – may mitigate possible near-term slowdown in sell-through. The issue, in our opinion, is likely to blow over with media and consumers refocusing on iPhone 4’s appeal, market opportunity and strong demand.”

Via: Apple Insider