Apple to end iPhone 4 case giveaways Sept. 30
Apple Inc. will stop giving away cases for the iPhone 4 to most users at the end of the month, saying the antenna problems associated with the device are less widespread than originally thought.
Free cases will still be given to users who experience a problem, the Cupertino, Calif., company said Friday on its website.
Apple Chief Executive Steve Jobs promised the free cases during a July 16 news conference in response to criticism that the newest iteration of the smart phone loses signal strength if held a certain way. Consumer Reports magazine said at the time that it couldn’t recommend the device because of the problem.
Gene Munster, an analyst at Piper Jaffray & Co. in Minneapolis, said when the free-case program was announced that it would cost Apple $40 million if it ran through Sept. 30.
Apple rose 34 cents, or 0.13%, to $263.41. The shares have gained 25% this year.
Also Friday, the Apple manager accused of taking kickbacks in exchange for company information agreed to a court order protecting the company’s trade secrets during pretrial negotiations.
The U.S. attorney’s office in San Francisco filed the protective order Thursday, saying discovery in the criminal case against Paul Devine may produce documents, tapes, diskettes, hard drives or other media containing material “that is intended to be kept secret and is trade secret information belonging to Apple.”
Devine agreed to procedures about how the data will be handled during pretrial bargaining, without giving up his right to challenge how such information may be used at trial, according to court documents.
Devine, 37, a global-supply manager, was accused of money laundering and wire fraud in a 23-count indictment unsealed Aug. 13. He pleaded not guilty to charges that he took at least $1 million in kickbacks from Asian suppliers.
Devine gave the suppliers of iPhone and iPod accessories confidential data that helped them win better contracts from Apple in exchange for payments, according to the indictment. Each count of wire fraud, wire fraud conspiracy and money laundering carries a 20-year prison sentence, prosecutors said.
