∞ Analyst: iPhone 4 antenna issue 'overblown,' will not affect sales

Apple’s much talked about iPhone 4 reception issues may have an affect on short term sales, but shouldn’t affect sales of the device long term, according an one analyst report released Tuesday. iPhone 4Calling the antenna issue a “PR black eye,” Piper Jaffray Senior Analyst Gene Munster said in a research note to clients on Tuesday that “while the issue has gained significant traction in the press, the reality is that we estimate this problem periodically affects 25% of iPhone 4 users given the fix is easy (a case for the iPhone), and 75% of customers choose to use a case anyway.”

Munster went on to characterize the issue as being “overblown.”

Apple does have a couple of options to deal with the issue, including offering a free Bumper case and doing nothing at all. Munsters estimates that Apple would have to give away 36 million cases, costing them $178.5 million.

“The third option is a recall, which we see as a highly unlikely scenario given the issue is completely resolved with a case, which is a significantly less expensive solution for the company,” said Munster.

Echoing thoughts I first posted in late June, Munster feels the iPhone problems were not detected by Apple because all iPhone 4s were required to be in a case during off-site testing.