Holding the Apple iPhone 4 in the bottom left corner can short out the antenna built into its casing, potentially causing the device to drop its signal. The matter went to court, with plaintiff Alan Benevisty demanding class damages for fraud, false advertising and breach of warranty.
Although Apple originally claimed it was a non-issue and that users should either avoid holding the phone in that manner or use a ‘bumper case’ (which protects the antennae and which Apple sold for $29), the company soon started providing the bumper case free of charge. And the designer of the iPhone 4 left the company.
Benevisty had claimed that Apple knew about the problem because it released the bumper protective devices on the same day as it launched the phone.
Now, without accepting any wrongdoing, Apple has agreed to pay iPhone 4 users $15 dollars each, and will continue to provide bumper cases free of charge as an alternative for at least 18 months after it ceases manufacturing the iPhone 4. Apple will email users with instructions on how to make a claim, and will establish a website at www.iPhone4Settlement.com (not available at the time of writing) to publicize the settlement.
In reality, this is unlikely to cost the company any more than it has already set aside. The settlement is either cash or the bumper; but it was already providing the bumper free of charge which originally sold for $29. A typical 100% mark-up may suggest that the monetary settlement is no more than a cash alternative to something it was already doing.
The newer iPhone 4S, with a redesigned antenna system, does not suffer from the death grip problem.