Tech Wreckage: Apple iPhone White Lie

Thinking antenna fix, iPhone 4 recall?Think again.
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NEW YORK (

TheStreet

) --

Apple's

(AAPL) - Get Report

white iPhone delay further underscores why you won't hear the company say it has a problem and a fix. Connect the following dots to see why.

Apple's iPhone 4 arrives June 4 and reports of antenna problems hit immediately.

Apple holds a press conference to say: We didn't know of any problem. There is no problem specific to us. Oh, and get free bumpers or return your iPhone if you think you have a problem.

A week later, Apple says delays with the white iPhone will not be resolved until later this year. Yet the black iPhones are fine.

Here's the thing. The basic premise of Antennagate is that Apple knew of the external antenna design flaw but still went ahead and sold more than 3 million iPhone 4s. That presents not just a product problem -- it could become a legal issue, say analysts.

Meanwhile, Apple manufacturing partners say they've been instructed to make

an internal insulation fix

that corrects the defect.

Apple needs to shut down production for a while to make the fix. Hence the availability times that have stretched into August will likely extend into September.

Bottom line: Apple can't say it has a fix and we shouldn't expect to hear demands for a recall of the 3 million phones in service.

And really, from Apple's perspective, the market speaks louder than critics. Supplies of iPhones can't keep up with sales.

It's a blinding success, you could say.

--Written by Scott Moritz in New York.

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