Apple to Lose $175M on Free Bumpers, iPhone Sales Not Impacted by ‘Antennagate’

Apple has set itself back some $175 by promising a free Bumper or third party case to every iPhone 4 owner, the company’s top execs said during yesterday’s conference call. Attending Wall Street analysts were also told that the iPhone 4 was Apple’s fastest-selling device to date, and that there was no sign that the antenna issue was impacting sales.

Apple’s conference call discussing Q3 - 2010 financial results revealed that giving iPhone 4 customers free cases will cost the company about $175 million, according to Apple executives speaking with Wall St. analysts.

Apple Chief Operating Officer Tim Cook announced sales figures during the company's quarterly earnings conference call, noting that the company was selling iPads and iPhones "as fast as (they) can make them," including sales to the enterprise market. “The demand for iPhone 4 is stunning,” said Apple COO Tim Cook. ”Let me be very clear on this: We are selling every unit we are making.”

On the ‘antennagate’ topic, Cook said the issue has had no impact on sales. “My phone is ringing off the hook with people who want more supply,” he said. He said there was not a significant number of returns of the smartphone, and that there were fewer iPhone 4 returns than those reported for the iPhone 3GS. “The ones for this specific (antenna) issue are extremely small,” Cook outlined.

Speaking to analysts and members of the press, Cook also said that Apple does not intentionally build reduced numbers of iPhone 4 units to generate hype. The discussion was spurred by Piper Jaffray analyst, Gene Munster, who asked Cook why Apple was always running out of products after a launch. "We do not purposely create a shortage for buzz," Cook said, adding that Apple was working hard to meet demand. Apple is yet to officially debut the white version of the iPhone 4, which has been delayed due to unforeseen manufacturing difficulties.