iPhone 4

In recent months it seems like Apple is becoming the company that everybody loves to hate. Scratch that, Apple is becoming the company that the media love to hate.  As the old adage goes, the media can build you up, but they can just as quickly knock you down. Media attention is indeed a double-edged sword and the backlash can cut deep and do irreparable harm to a brand. So, can the swarm of Apple-hating media knock Apple off of its pedestal once and for all?

The mounting iPhone 4 controversy is reaching a crescendo. Christ, you’d think Apple blew an oil line in the Gulf of Mexico with the way the media has reacted to this week’s Consumer Reports review on the iPhone 4, suggesting that it was recall worthy. But what effect, if any, is all of the negative press having on Apple’s sales of the new device?

Consider this: In today’s widely anticipated press conference, Jobs said Apple has sold more than 3 million iPhone 4s since they launched in mid-June, making it one of the most successful releases in the company’s history. Only 1.7 percent of those devices have been returned, compared with a 6 percent return rate for the iPhone 3GS during the same time period. And if people are so unhappy with their “lemon” iPhones, wouldn’t there be hoards of unhappy customers lined up outside of Apple stores, demanding refunds?

According to CNN’s coverage of the press conference, users who are unhappy with the iPhone 4 will get a free bumper case to prevent the so-called “death grip” that interferes with reception. They’ll also be able to return the phone for a full refund up to 30 days after the purchase date, and AT&T will let customers out of their two-year contracts penalty-free. This seems pretty reasonable and fair to me.

As an iPhone user for the past two years (my iPhone 4 arrives next week!), I can empathize with fellow iPhone users who think the network coverage sucks, as it certainly does in San Francisco. But for some reason, I keep coming back. Why? If you’re an iPhone user, you know the answer.

So…is all PR good PR? I personally think for Apple, this statement holds true. As a shareholder, I’m bummed that the stock price is down due to the media feeding frenzy, but I know it’s just a temporary setback. Only time will tell what longer term impact all of this “bad” press will have on Apple’s sales. My prediction is that the company will emerge from this unscathed.