Apple Inc. (AAPL) iPhone 4 and Its $5M Defect?

Apple Inc. (NASDAQ:AAPL) has certainly been developing its share of devices over the last few years, and while every company desires to be perfect in production, the truth is they’re not. Defects are part of the system and many times, the reputation of a company can be determined by the frequency of the defects in one sense, but also how the company handles defects when they are known by the company.

Apple Inc. (AAPL) to be Added to Several WisdomTree ETFsAnd apparently, the reputation of Apple Inc. (NASDAQ:AAPL) is at stake involving a device that first went on the market three years ago. A class of iPhone 4 users has filed a $5 million lawsuit  not so much over a defect involving  the phone’s power button, but because the class claims that Apple knew about the defect and did not acknowledge it until after the warranty expired. Thus, when users would go to an Apple Store to have it fixed, it would cost the customer nearly $150 to have the problem resolved.

Image: Apple Inc. (NASDAQ:AAPL)

The class-action was first brought forth by Debra Hilton of Florida, who bought an iPhone 4 and noticed that the defective power button would not allow her to lock the phone or to shut off the power. She claimed – and ultimately claimed by others in the class – that Apple corporate knew about a problem with the phone’s flex cable that controls the button, but did nothing about it or acknowledge the existence of the defect until more than a year later.

Hudson apparently is using a YouTube video and some posts on Apple’s forums as evidence that customers complained about the power button on the iPhone 4 and that a video surfaced showing how to repair it. There was more evidence presented by an iPhone “repairman” (there is no connection to Apple that we’re aware of) who says that the power-button defect is a common one on the iPhone 4.

As is typical practice for most companies, Apple Inc. (NASDAQ:AAPL) has no comment on the lawsuit at this point, as the filing was made just this week. The class, which is an unknown number of customers, is seeking damages of about $5 million, according to the filing.

What do you think about this lawsuit? Is there much of a case against Apple Inc. (NASDAQ:AAPL) in this regard? If this is successful, could imperfection lead to further damages for companies in the future? Let us know your thoughts in the comments section below.

DISCLOSURE: None

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!