Skip to main content

Apple’s response to iPhone glitches is key

BRANDON BAILEY
AP Technology Writer

SAN FRANCISCO (AP) — Apple’s response to a high-profile gaffe involving its iPhone software may be more important than the glitch itself.

As the giant tech company scrambled to fix a software glitch that left some of its new iPhones unable to make calls, some analysts said Thursday that Apple is doing the right thing by quickly acknowledging and apologizing for the problem — which it was slower to do with earlier iPhone problems.

Apple released a new update late Thursday that the company said would repair the problems caused by software it released Wednesday morning. And it repeated an earlier apology to owners of its newest iPhones who were affected by that buggy release.

“There’s a certain perception that Apple has to get things right, and when they don’t, the whole company gets questioned,” said Carolina Milanesi, chief of research at Kantar Worldpanel. “But they came out and said ‘We apologize; we’re working 24/7 to fix it.’ I think that’s what matters.”

Apple’s stock fell nearly 4 percent Thursday, leading a broader decline in technology shares, a day after the company was forced to withdraw an update to its new iOS 8 mobile software because of glitches that primarily affected customers who had purchased its new iPhone 6 and 6 Plus models. The 6 Plus phone has also been the subject of social media reports that its extra-large shell is vulnerable to bending.

In a statement Thursday, Apple defended its manufacturing standards and said bending “is extremely rare” with normal use of an iPhone. The company said just nine customers had contacted Apple to report a bent iPhone 6 Plus since they went on sale Friday.

Later in the day, Apple released a new update, dubbed iOS 8.0.2, which it said would fix the problems caused by the iOS 8.0.1 update that it released on Wednesday. “We apologize for inconveniencing the iPhone 6 and iPhone 6 Plus users who were impacted by the bug in iOS 8.0.1,” the company said in a statement.

A day earlier, the company had also apologized “for the great inconvenience experienced by users” and vowed to work “around the clock” to fix the problem.

Cupertino-based Apple has said it sold a record 10 million of the new iPhone models over the weekend, in what the company has called one of the biggest product launches in its history. It also reported this week that nearly half of all iPhone and iPad users had upgraded to the new software known as iOS 8.

That new software contains a number of new features and is more complex than earlier versions of iOS, analysts said. Apple released the 8.0.1 update on Wednesday to fix some flaws that were detected after iOS 8 was released — only to find the 8.0.1 update created problems of its own. The new problems included interference with calling and with a feature that lets people unlock their phones with their fingerprint.

That’s not uncommon, according to veteran tech analyst Ross Rubin of Reticle Research. “All major companies have released fixes that they’ve had to pull because of unforeseen side-effects,” he added.

As for the bending issue, Rubin said the iPhone 6 Plus is “a large, thin device. That’s not to say customers should treat it gingerly, but it’s still an electronic product and it’s an investment, and it should be treated as such.”

Apple is held to a higher standard by many consumers, analysts said. But Milanesi said she thought the company suffered more harm a few years ago, when it was slow to acknowledge complaints about poor reception and dropped calls that affected new iPhone 4 models when they were released in 2010. The company eventually offered a fix for the problem, after then-CEO Steve Jobs initially suggested users just needed to hold the phone differently.

“There wasn’t any of that this time,” Milanesi said. She noted that Jobs’ successor, CEO Tim Cook, had also taken responsibility and apologized for initial problems with Apple’s Maps software when it was first released.

Meanwhile, one analyst said Thursday’s stock sell-off was more likely related to broader market concerns than investor unease about the new iPhones.

“Earnings is what drives the stock the most,” said Walter Piecyk of BTIG Research. “It’s too early to say what the impact’s going to be, but it does not appear to be something that would impact the company’s ability to deliver on earnings” in the next two quarters.

Apple said users affected by the software glitch can connect their phone to a Mac or Windows computer and download a file to restore an earlier version of the iOS 8 software.

Apple offered a Web page with instructions: http://support.apple.com/kb/HT6487 .

The company’s stock ended Thursday down $3.88 at $97.87. Earlier this month, it hit an all-time high of $103.74.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story