iPhone 3G Adapter Recall – A 'Minor Speedbump'

Apple announced last week that, under certain conditions, the iPhone 3G ultracompact USB power adapter may cause “electric shock,” recalling all units from the US, Japan, Canada and other territories. While some may think this affects Apple's sales / image, American Technology Research analyst Shaw Wu assured clients that Apple’s recall is a “minor speedbump” which affects “only a small number of users”.

In an official press release issued on Friday, last week, Apple claimed to have received reports of detached prongs involving a very small percentage of the adapters sold. While no injuries have been reported, Apple has somehow determined that its new ultracompact USB power adapters are faulty. Particularly, the metal parts that go inside the outlet can break off, creating the risk of electric shock.

On the Support section of its web site, Apple states, “We have received reports of detached blades involving a very small percentage of the adapters sold, but no injuries have been reported [...] Customer safety is always Apple’s top priority so [Apple] has voluntarily decided to exchange every ultracompact power adapter for a new redesigned adapter, free of charge,” says the company. The program kicks off this Friday and is available for residents of the US, Japan, Canada, Mexico, and several other Latin-American countries.

In his note to clients, Wu cites supply chain sources saying there was “little disruption” in sales of the iPhone 3G 8GB. Wu claims some AT&T stores are even running dry on supplies.

Wu did note Apple is likely to face a “headline risk” from negative publicity surrounding the ultracompact USB power adapter, but believes it can manage the situation thanks to its positive reaction to the issue (free exchanges). And while not too many adapters have been reported as faulty, it has been revealed that users generally prefer the USB cable to charge their iPhones to a computer.

Wu maintains a “buy” rating on Apple of $205.