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IPhone 4 – in a class of its own

6 July 2010

Apple’s iPhone 4, which was only launched last month, has already resulted in the first lawsuit being filed against the company in the United States.

The suit claims that Apple knew that the antenna design of the iPhone 4 caused reception problems, but ‘wilfully, falsely, and knowingly misrepresented material facts relating to the character and quality of the iPhone 4 units.’ It also states Apple failed to use due care by failing to issue a voluntary recall, or at the least waiving the 10% restocking fee for returned iPhone 4s.

If it becomes a successful ‘class action’ suit, Apple would also have to pay damages to anyone else affected by the alleged defects. This case illustrates how quickly a product launch can damage a brand if design defects are discovered. The more high profile the product, the more extensive will be the consumer testing so due diligence is critical to ensure that new products are fit for the marketplace.

So once you ve done your testing and your due diligence is in place – is it ok to be like the CEO of BP and stand by your Brand – or do you bow to the inevitable and accept that whatever happens – the customer is always right?

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