iPhone 4S Gets Thumbs Up in Consumer Report
Consumer Reports, a consumer advocacy group, recommended the new iPhone 4S to customers after Apple (NASDAQ:AAPL) fixed an antenna glitch that plagued its predecessor iPhone 4. [1] The flaw had caused the iPhone 4 to drop calls when gripped a certain way. After initially playing down the issue, which became known as “Antennagate,” Apple gave out free cases and issued a software update designed to fix the glitch. Interestingly enough, the report suggests that Consumer Reports still has higher scores for Google (NASDAQ:GOOG) Android devices such as the Samsung Galaxy S II and Motorola Mobility’s (NYSE:MMI) Droid Bionic. These ratings largely rode on the back of speedy 4G access.
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iPhone 4S demand remains strong
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After having sold 4 million iPhone 4S units during the first weekend of its launch in mid-October, Apple continue to experience a strong demand for iPhone 4S. Recently, Chris Whitmore with Deutsche Bank issued a note to investors in which he mentioned that a poll of about 30 retail stores revealed Apple is experiencing daily stock-outs of the iPhone 4S at most of them. [2]
Another report indicated that iPhone 4S preorders sold out in their first 10 minutes of availability in Hong Kong on Friday, demonstrating the kind of demand that iPhone 4S is generating all over the world. [3]
No issues with iPhone 4S battery experienced by Consumer Reports
Another notable thing was that Consumer Reports did not find any major issues with iPhone 4S battery life, scoring the phone “very good” in that category. Problems with iPhone 4S’ losing their charge were first reported by device owners on Apple’s support forum and then confirmed by Apple (see Apple to Fix 4S Battery Drain Bug; Siri Has Some Early Stumbles). The company says that bugs in its iOS 5 software are to be blamed and it is working on a solution.
We maintain our price estimate of $502 for the Apple stock, which is about 20% above market price.
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Notes:- Consumer Reports recommends the iPhone 4S, November 8th, 2011 [↩]
- Apple: Deutsche Retail ‘Checks’ See iPhone 4S Demand Strong, Barron’s, November 7th, 2011 [↩]
- iPhone 4S preorders sell out in Hong Kong after 10 minutes, AppleInsider quoting Ticonderoga Securities as the source, November 7th, 2011 [↩]