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Sat, Nov 21, 2009 - 07:02 PM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Analyst: Apple’s iPhone could develop ‘screen-deadness’ over time
Friday, August 10, 2007 - 11:17 AM EST

Could Apple's iPhone develop "screen-deadness" over time?

Nomura International analyst Richard Windsor in a note to clients says that the property rights for the iPhone touchscreen's chemical makeup were purchased from a bankrupt Finnish firm that could not solve degradation and loss of sensitivity that developed over time; typically within three to six months.

"While Apple should have been aware and fixed the problem, the broker said, only time will confirm that all is well with that touch screen," Aude Lagorce reports for MarketWatch.

Full article here.

Charlie Sorrel blogs for Wired, "Reports are surfacing about dead spots on the iPhone touch screen, usually a strip about a half inch from the top. Restoring and resetting the phone don't seem to help, so it looks like a hardware problem."

Sorrel reports, "Apple employees are familiar with the problem and recommend sending the iPhone in for a three day repair, although if you want a phone in the meantime it'll cost you $29..."

Full article here.

Philip Elmer-DeWitt blogs for Business 2.0, "Apple (AAPL) has responded swiftly to scattered reports of 'dead spots' on iPhone touchscreens -- and received high marks from users for the speed and efficiency with which defective devices were replaced."

"Customers who returned their iPhones with 14 days of purchase have been given a new one on the spot. Others have been issued loaner iPhones -- sometimes for free -- while their units were sent out for repair," Elmer-DeWitt reports.

"So far the number of iPhones affected seems to be small... Although Apple has not yet responded to press inquiries, its support staff has been unusually pro-active, even monitoring online complaints and stepping in unbidden," Elmer-DeWitt reports.

Full article here.

[Thanks to MacDailyNews Reader "Vague Nomenclature" for the heads up.]

MacDailyNews Take: Apple investors: If you haven't already, brace.

Apple has too much riding on this not to have understood the issue and have fixed the problem described by Richard Windsor. Likewise, Apple has too much riding on this not to diligently, appropriately, and rapidly fix any (isolated or widespread) problems that iPhones develop over time - touchscreen or otherwise.


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Aug 10, 07 - 10:21 am Comment from: Scooby Doo

Ruh Roh!

Aug 10, 07 - 10:21 am Comment from: Twisted Mac Freak

Well, whittle my thumbs. That could be a touchy problem.

Aug 10, 07 - 10:23 am Comment from: Peterson

I stepped in unbidden once.

Aug 10, 07 - 10:26 am Comment from: Whittler's Mother

All your thumbs are belong to us!

Aug 10, 07 - 10:27 am Comment from: Blind Fanboiz Cultist

...degradation and loss of sensitivity that developed over time; typically within three to six months.

Well I've had my iPhone for SIX YEARS and nothing has happened so far.

I feel it rise to the occassion deep in my pocket whenever I visit the college girls swiming pool.

So there!

Aug 10, 07 - 10:28 am Comment from: MikeK

iPhone AppleCare anyone?

Aug 10, 07 - 10:29 am Comment from: Twisted Mac Freak

This can't be good for the fit and Finnish.

Aug 10, 07 - 10:30 am Comment from: justified

Could that mean that refurbs are on the way at decent discounts?

Aug 10, 07 - 10:31 am Comment from: wall street guy

give me a break

Nomura posts this like it is a big discovery....it is not

It is just another example of trying to move the stock (which is really easy).

Apple knew all about this and purchased the IP to prevent any possible patent lawsuit.

Apple tested the hell out of this device for durability (hence the aluminum back and glass screen). The touchscreen is far more durable than a blackberry's tiny mechanical buttons.

Aug 10, 07 - 10:36 am Comment from: I'm Braced

MDN: where is the bottom? I need to know whether to panic, jump out a window.

Also, when will we see this again: "APPL closes at new high, again."

Answer: maybe never.

Too much hype from his Steveness, loss of quality such as this iPhone problem, and enormous disaster in iMovie remake.

Aug 10, 07 - 10:38 am Comment from: Davey G.

I was under the impression that the touch screen worked through electrical conductivity, not heat. Could this be all BS??? No!! Analysts would never spout BS to try and drive down stock price... Never!

D.

Aug 10, 07 - 10:38 am Comment from: So There

Apple: Nomura Securities Analyst Could Develop "Brain-deadness" Over Time

Aug 10, 07 - 10:38 am Comment from: Sunlokyee

I haven't had much problem with the screen except when I apply pressure on the home screen button too long during jailbreak on iFuntastic. Sometimes it causes the bottom center of the screen, where the border is, to be brighter than other part of the LCD. It tends to recover after a few minutes and not really noticable during use.

Aug 10, 07 - 10:39 am Comment from: an electrical engineer

This research note is almost comical. Do the numb nuts at Nomura really think Apple hardware engineers would purchase and use an obviously flawed component ? Equity analysts should stick to studying balance sheets and not comment on technology.

Clearly just a matter of purchasing rights to anything that relates to "prior art" for patent protection purposes.

Aug 10, 07 - 10:39 am Comment from: wannabe

News flash: stocks go up and down! Teenagers on the Internet SHOCKED!

Aug 10, 07 - 10:41 am Comment from: BustingTheSkullsOfIdiots

Why do people post obviously ridiculous bull like "I'm Braced"? What do you hope to gain? I doubt that you believe the stuff that you write, so why bother?

What motivates a serial liar? That is the question that applies to a good 20-30% of the posters here. What motivates you to lie unconditionally, reflexively, and continually?

Is MDN simply an online asylum?

Aug 10, 07 - 10:44 am Comment from: BustingTheSkullsOfIdiots

Great take, wannabe. You nailed it!

Aug 10, 07 - 10:46 am Comment from: Hello.....

To the idiots on MDN......

This is an "equities analyst" speculating that this hardware problem COULD happen in the future. Based on a really stupid connection to purchased intellectual property rights. Don't go all in a tizzy like it is a Xbox flaw....that's real, this is a joke. (unless you are short the stock).

Aug 10, 07 - 10:47 am Comment from: macman

There's no way Apple would let this slip thru if they are going to be using this multi-touch technology in all future iPhones and iPods. There's just too much revenue on the line. Now, MS? That's another story (i.e. ring of death Xbox 360s).

Aug 10, 07 - 10:58 am Comment from: raskol

It doesn't matter if it's for real or not. The point is that the stock market reacts to this insanity.

Aug 10, 07 - 11:03 am Comment from: critic

I wonder if this was behind the last minute switch to the glass screen instead of plastic. Maybe the coating has better durabilityon glass.

Aug 10, 07 - 11:11 am Comment from: MacMarc

Analyst: Living could develop 'deadness,' over time.

Aug 10, 07 - 11:19 am Comment from: Pimple

@Davey G.

You are correct. It is NOT Heat - that article is miss informed...but that doesn't make any difference when it comes to Wall Street. You could say that 2 puppies were killed for every iPhone made, and the stock would drop. There are a few people that are reporting this problem though already. Nobody knows yet if it is widespread. My guess is around 1-2% which is a perfectly acceptable defect rate.

Aug 10, 07 - 11:20 am Comment from: wall street guy

wow....the analysts really miss the executive stock option issue for rumors

but this is really stretching

this is now one of the favorite stocks to trade on wall street....so easy to move up and down

Aug 10, 07 - 11:29 am Comment from: ChrissyOne

"Is MDN simply an online asylum?"

We're all quite mad here.

Aug 10, 07 - 11:31 am Comment from: ChrissyOne

"You could say that 2 puppies were killed for every iPhone made, and the stock would drop."

THEY KILL PUPPIES!?!?!?

That's it, I'm selling.

Aug 10, 07 - 11:32 am Comment from: MacDan2004

I think Apple is aware of what is riding on the iPhone's success. I have a friend who's iPhone fell out of the case onto the concrete and shattered the screen. Apple said because he bought the case at the Apple store and because it was clearly the fault of the case (bad design?) they would fix it for free. They would charge him $30 for a loner but hey, fixing that screen has to be more than a $30 expense.

Aug 10, 07 - 11:34 am Comment from: en

PLEASE, I believe that Steve Jobs has had his iPhone for about 8 months by now. If it had a major problem, I think he would have had it fixed. What do you think?? grin

en

Aug 10, 07 - 11:35 am Comment from: His Shadow

Classic Fear, Uncertainty and Doubt.

Someone will try to pretend that this is just a cautionary tale, a heads up for potential issues down the road.

But I think given the audacity of the Jim Cramer's of the world, we can see right thru this kind of BS. It was my understanding that the actual technological partners behind the screen were relatively unknown?

I'm going to go out on a limb and say that Apple will have a few thousand phones that have serious issues. And that expected percentage will get an unimaginable amount of press, while people have pretty much already stopped talking about the fact that the Xbox 360 has a 30% failure rate.

Aug 10, 07 - 11:56 am Comment from: KenC

This sounds like nonsense. As far as we know, this screen is from Balda a German company. And, the touchscreen is not based upon heat, but electrical conductivity. Blow on your screen, the heat of your breath does nothing, other than alloow you to clean it. And, what's up with the word, "film", is he talking plastic film, which the iPhone does not use, or is he talking a chemical film, which is nuts, since you'd have to constantly reapply a chemical film.

Aug 10, 07 - 12:01 pm Comment from: Missy Pants

@ I'm Braced
...
"Too much hype from his Steveness, loss of quality such as this iPhone problem, and enormous disaster in iMovie remake."

"I'm Braced", Your trolling motor is showing.
Jobs never HYPED the iPhone.
Apple hardly said anything about it before its launch except for matter-of-fact product type and timeline announcements.
Any excitement created was the result of techies and design-savvy consumers realising that if Apple was releasing a phone, it would be amazing. And they were correct.

A Short Poem for "I'm Braced"- by Missy Pants:

Back to your hole, troll.

- the end

Aug 10, 07 - 12:10 pm Comment from: Cubert

Apple has something like 13 billion in the bank. Bust out some of that to hire many, good telephone support people!

Also, what are they going to do with all that cash? Some big R&D;funding for OS 11? Some massive building project (over and above what they have going on now)?

Aug 10, 07 - 12:23 pm Comment from: Thorin

FUD

"gee, my iPhone has dead spots on the screen after I dropped it down a flight of stairs."

Aug 10, 07 - 12:48 pm Comment from: DRM sucks

Just because Apple licensed the IP from that company, it does not follow that they are using the exact same technology. It very well could have been a starting point or it could have been so close to an internally developed technology that they bought the rights to avoid lawsuits.

Aug 10, 07 - 12:59 pm Comment from: I'm Braced

bought 100 shares @ 121

Aug 10, 07 - 01:06 pm Comment from: MacGuy

But the anal-yst already has "brain-deadness"

Aug 10, 07 - 01:10 pm Comment from: Petey

Yet another scam to try and reduce the share price so that some losers can save a few cents whenthey buy them.

Aug 10, 07 - 01:27 pm Comment from: @ Petey

though I don't disagree:

146 x 100 = 14600
121 x 100 = 12100

smells like a 2500 dollar savings to me

Aug 10, 07 - 01:33 pm Comment from: dwoodruff

gosh I really believe this... Thanks for the report Mr Ballmer...

Aug 10, 07 - 01:42 pm Comment from: Steve Job's Pool Guy's Friend

Yep,

Apple has been KILLING PUPPIES for years to appease their God and Satan's cousin, Stan.

Stan, cousin of Satan, is a vengeful god who is helping Steve
dream up these new products and thus take over the world.

All Stan asks is, for every iPhone Apple sells 2 puppies must die a really really horrible death. Like a microwave or blender. No preference on breeds though, doberman, collie, poodle, its
just got to be young. Stan also says that this rumor about the
screens going dead is just a ploy to make the stock cheaper.
He will be up to 1 million puppies by next week, Stan willing.

Thats the scoop from the guy who knows the guy that cleans
Steve's pool.

Aug 10, 07 - 02:22 pm Comment from: ken1w

How about writing about problems that actually exist? It's clear that prototypes of the iPhone existed for at least one year before the iPhone was released. Screen failure in three to six months would have been evident. And although multi-touch screens are new, touch screens of this type have been around for years. This is obviously another attempt to push down AAPL for rich clients who missed the boat. I'll be buying some more.

Aug 10, 07 - 02:31 pm Comment from: Bullshit

See Digital Daily today:

http://digitaldaily.allthingsd.com/20070810/iphone-deadspot/

I recall that during Steve Jobs' original presentation on the iPhone, he explained that the screen reacts only to fingers, not fingernails, a stylus or a glove. That alone disproves the FUD spewed forth by this idiot.

I hope the SEC investigates this bastard for trying to short Apple stock. Frickin' bear.

Aug 10, 07 - 04:02 pm Comment from: Bob R.

iPhone can be used with the cloth Apple provided to clean the glass. Go ahead and try it... I was surprised that this happened! Hold the cloth around your finger and "slide to unlock" then try and button you like. Now if they make a pad for your finger from the same material you'll never smudge the glass again!

Aug 10, 07 - 05:26 pm Comment from: @ KenC

KenC,

The type of touch screen used on the iPhone is called a "projected capacitive" touchscreen. It is NOT based on electrical conductivity nor is it based on heat. It is based on the capacitive characteristics of conductive objects, i.e. your finger.

Aug 10, 07 - 06:51 pm Comment from: Hmmm. Really?

@ Ken C:

I thought it was magic.

Aug 10, 07 - 07:09 pm Comment from: hardmanb

There can't be any problem with the screens, as the Analysts and Pundits have already revealed that there is "no new technology" in the iPhone.

Aug 10, 07 - 10:00 pm Comment from: UberMacUserFanboy

"Do the numb nuts at Nomura really think Apple hardware engineers would purchase and use an obviously flawed component ?"

You mean like exploding batteries, discoloring plastic cases, whining motherboards and overheating MacBooks?. All reports of faults with Apple products in the past are just lies spread by Bill Gates. This will be shown to be the same too. Apple would never sell us faulty hardware!

Aug 14, 07 - 12:24 am Comment from: Ardie

Golly, everyone I know is having iPhone problems--seriously. So we rushed down to one of those giant blue boxes and all bought Zunes. We can't wait until Surface comes out. I almost have $10,000 saved up in my piggy bank. [Please God let Apple stock go down so I can buy in...]

Aug 14, 07 - 09:15 pm Comment from: LG

"Please God let Apple stock go down so I can buy in"

You will get your wish.

Aug 14, 07 - 09:36 pm Comment from: armstronglouis

quote
Nomura International analyst Richard Windsor in a note to clients says that the property rights for the iPhone touchscreen's chemical makeup were purchased from a bankrupt Finnish firm that could not solve degradation and loss of sensitivity that developed over time; typically within three to six months.
iPhone is a revolutionary new mobile phone that allows you to make a call by simply pointing your finger at a name or number in your address book, a favorites list, or a call log

http://www.iphone-converter.org

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