A betting company in Ireland says odds are that Apple Inc. will recall its iPhone 4 over the now-infamous antenna reception problems.
Paddy Power said on Wednesday that Consumer Reports’ refusal to recommend the smartphone has sparked a wagering frenzy. As a result, the bookmaker, Ireland’s largest, first offered odds of 2-to-1 against a recall; that means a bet on a recall would pay $2 plus the initial $1 if such an event occurred, Bloomberg’s BusinessWeek explained. The odds now are 4-to-6. That means a winning bet of $1 would pay $1.66 if a recall happens.
Apple hasn’t commented to media about the recall talk. In fact, the company has maintained a low profile over the signal-reception flap, and come under great criticism for that approach.
An iPhone 4 recall could cost Apple up to $1.5 billion, some analysts say. That price tag is prompting other industry observers to speculate that Apple would be more inclined to issue rubber cases, at a cost of about $1 per phone, that would cover the iPhone 4’s bottom-left corner, the area causing the reception interruptions.
The newest version of Apple’s incredibly popular smartphone was unveiled in late June. In fact, pre-order demand through Apple and its exclusive service-provider partner in the United States, AT&T, was so high that servers crashed. Both companies ended pre-ordering opportunities early.