Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL): Faulty iPhone 4 Antenna Will Cost The Company $15 A Pop

Apple Inc. (NASDAQ:AAPL) has become a more generous company since Tim Cook took over for Steve Jobs as CEO 18 months ago. When Jobs returned to the company in 1997, he shut down the charitable foundation that was set u which took some Apple profits and gave them to various non-profits. Since Jobs left for good in late 2011, Cook reinstated the charitable giving.

Should this Concern Apple Inc. (AAPL) and Google Inc (GOOG)?While Apple Inc. (NASDAQ:AAPL) isn’t exactly freely giving of its funds this time around, it is determining the value of a faulty iPhone 4 antenna to be about $15, and checks are in the mail. This recent giving of windfall came as a result of the infamous “Antennagate” lawsuit involving the iPhone 4.

Apple did admit (finally, after initially saying the problem was industry-wide) that there was a problem with the antenna on that model of iPhone, where a hand that got near the antenna – holding the phone a certain way – would severely disrupt reception and any times result in dropped calls.

Apple Inc. (NASDAQ:AAPL) tried to rectify the situation by offering a bumper case that would keep the hand away from the antenna, but many customers opted to file a class-action lawsuit against the company.

The result was a settlement of $53 million, which after the attorneys took their cut, came to about $15 for each iPhone 4 user who filed their claim in the class. At least, those who filed a claim and did not receive one of the $15-valued bumper cases that were made available free of charge.

All told, there were more than 2 million claimants in this class, which was reduced to one class from 18 separate lawsuits.  Since then, of course, Apple inc. (NASDAQ:AAPL) and other smartphone makers are paying more attention to the antenna to ensure these problems don’t persist in more recent versions of the phones, knowing that everyone tends to hold their phones differently.

Does this $15 check put everything to rest for Apple Inc. (NASDAQ:AAPL)? Was it worth the trouble for those class members to go through the lawsuit? Let us know your thoughts about this case in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.