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Apple iPhone 4 Recall Could Cost $900 Million

Apparently if Apple were forced to issue a recall of the iPhone 4 due to its antenna problem it could ultimately cost the company a hefty $900 million says one analyst.

Paul McDougall of Information Week reports that Mika Abramsky of RBC Capital Markets has stated that Apple at a minimum may face “a broad repair scenario” with their new iPhone 4 and maybe a total recall of the device.

Apparently Abramsky said that the repair scenario could “shave $900 million of Apple’s bottom line”, repairing all iPhone 4 units in the field would cost $300 million while supplying Bumper cases would cost Apple $45 million.

Shaw Wu, analyst for Kaufman Bros on Tuesday said the iPhone 4 antenna problem could impact on Apple’s earnings and said in his note, “Should this antenna issue become a bigger deal, there could be a risk to our as well as consensus estimates.”

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