Apple Likely to Spin, Not Fix iPhone 4 Problem

NEW YORK ( TheStreet) --With a mushrooming iPhone antenna problem threatening to stain Apple's ( AAPL) spotless image, the company has decided to hold a press conference Friday.

Thanks to Consumer Reports' earnest call for action, a little slip in the stock price and a bit of Top Ten mockery from David Letterman this week, Apple has arrived at the so-called fork in the road.
iPhone

Now Apple faces two choices: Fix the problem, or try to talk its way out of it.

Hilariously, a press conference suggests the later -- more talk, no action.

A press conference means there's a lot of explaining to do. A press conference doesn't say, "we are wrong, you are right." A press conference says it's our stage and we'll tell you when there's a problem. A press conference says you don't even know a fraction of what we know about antennas.

Apple has a history of dodging this problem. "It's not a problem." "It's AT&T's ( T)." "It's the signal strength meter." "It's your hand." "It's common with all phones." Friday's conference should be an elegant continuation of this trend.

Apple shares are only down 2% since Consumer Reports called out Apple on the problem and raised the issue of a recall. Meanwhile, Apple can't keep the iPhones in stock.

There's a right way to handle this, but Apple's right way might not be the right way you were looking for.

--Written by Scott Moritz in New York.

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