money because it is from apple. >> people will pay the money because it is apple. it is the cool product to have right now. no question about it. i'm sure everybody else in the consumer electronics sphere of things would love to emulate that brand success. >> susie: thanks a lot, scott. and that's scott gurvey reporting. >> thanks. >> susie: well, it's an interesting view turn on wall street today, tom, with the dow coming back on the positive. it will be very interesting to see what happens. we were just talking about apple, if that sets the tone for trading tomorrow. >> tom: absolutely. lots of positivey. and negative around yahoo. among those things we'll get to in tonight's "market focus." it is the peak weak for earnings, giving the markets plenty to digest. a weak start to the day thanks to a series of revenue misses and a drop in new home construction gave way to afternoon buying. in addition to apple, after the close, yahoo's profit edged past estimates by a penny. but revenues were lighter than expected and the company saw online display advertising weake

the guess is some people worried apple might call a recall of all the phones, which could be very expensiveinstead giving away bumpers that will not be noticed on apple's bottom line. it was a big day to sell overall so apple got caught up in that by the end. we did see perhaps relief buying by investors when it seemed whatever this antenna thing turns out to be, it will not short term cost apple a lot of money. >> quickly on that bumper. you're supposed to show up at the apple store with your iphone 4? >> if you have an iphone 4 you can get a bumper for free if you buy one. if you bought a bumper and paid $30, you can go on to the apple website and apply for a refund. ultimately, the goal is everybody to gets one of these phones has a free bumper to walk around with. >> thank you, scott. >>> we updated a story live on nbc bay area.com this morning. tonight you can check out the raw video and pictures of jobs' announcement. >>> hundreds of california national guard troops headed south to protect the border. their redeployment is a federal effort to stop drug trafficking and illegal immigrat

>> you only have to look in the apple store to see how popular the brand is. it could tarnish it a little bit. >> couple of tracks such devotion from its fans -- apple attracts such devotion from its fans it felt it could ignore the complaints. now the message about the faulty phones appears to be getting through. bbc news. >> are correspondent in san francisco was at the news conference held by steve jobs. she joins us now. of free plastic case. will that be enough to retrieve the damage done here? >> i think what is really going to tarnish the reputation is steve jobs's performance. he admitted from the get go that apple is not perfect, but neither are smart phones. yes, this will alleviate the problem, but was steve jobs said was this problem is not just a problem for apple and the iphone, but it is a problem for all the smart phone industry. it became much more noticeable. steve jobs give up a rather robust defense of the situation this morning. he apologized for what he said was a small percentage of users who experienced a strong drop in calls. as far as

the apple boss apologizes to customers. and more than 5000 people have been arrested as part of an operation against illegal gambling. welcome to "bbc world news," broadcast to our viewers on pbs in america, also around the globe. coming up later for you -- why was it george clooney in court today? nothing to do with movies. and remembering that moco the dolphin. loved by many, and in millions to some. -- and and millions to some. -- an annoyance to some. hello. president obama has welcomed the bp's success in stopping the flow of gold from its -- flow of oil from its leaking well in the gulf of mexico. he says it is undoubtedly progress. experts are testing the pressure to see if it can be shut down completely. >> is this the moment that the stain of bp's oil spill starts to vanish from the waters of the gulf of mexico? 1 mile down, this is how it looked last night. the leak we are all used to seeing gradually being turned off until the flow was cut to just a wisp of oil. good news, the president obama warned americans to

so at the hays has the story. >> apple ceo steve jobs said he's answering the call by phone for users. >> the first thing we've learned is smart phones have weak spots. >> leg of complaints over intend issues on the i phone for the tech giant is offering a free case. to prevent users from blocking intent with their hand and a refund to those who've already purchased one. >> we figure out what's wrong and we try harder. and when we succeed they reward us by staying our users. >> complaints about drop calls began soon after the i phone one on sale june 24th. apple's first response hold the loan differently, not a selling point that would make consumers rushed to buy one. >> i definitely wait to because i want to=ñ have a cell phone tt works so. personally i'd want a way to until they got past the bugs and fixed all the problems in and out of the second one. >> consumer reports while calling for the best of mark phone on the market could not recommend the i phone 4 to its readers. apple these criticisms by leaving consumers on hold too long. >> we want an answer when it was inconsistent

apple step forward to offer a solution today. jonathan blum is here you have all the news. his is it? >> this is about all that apple's going to be doing right now. there weren't any surprises today. apple was in going to do recall because a which is costing too much. now we know in fact apples' not recalling their offering users free cases like this bumper that you get at the apple store they might even saw one of these. this is of the critics started asking for weeks ago because putting a foreigner rhetoric is the best can actually help fix the reception problem cured when apple initially told users to hold the phone a different way and go buy a case the criticism got exponentially louder appeared this morning steve give the pr nightmare when they call yet and tennessee to calling the internet designed hits the roof of the problem. it lasted about an hour-and-a-half starting with the good news that the i phone is selling like hot cakes and then moving on to an apology he said the seal was embarrassed the consumer reports will recommend: apple us to do everything it can tur

. >>> apple ceo says the company is work is its butt off to fix things. >> they were responding to complaints about antenna flaw that results in dropped calls. terry mcsweeney is live at apple's headquarters with more on what he had to say. >> quite an event going on inside the apple headquarters. he is taking questions from the media. a lot of media from all over the country want fog know what he was going to do to fix the problem. he says the answer is free bumper cases for anyone who owns one of the new iphone 4's. you start applying for them on monday but there was more than that. people provided entertainment and it was at the media for hyping antenna gate. ♪ ♪ >> we're not perfect. we know that. you are know that. phones aren't perfect either. >> and with that jobs showed videos of other phones including the blackberry and samsung showing they fl problems with antennas, too, depending on where you put your hand. he says apple was picked out because the spot is easily spotted because a gap in the casing. the stainless steel case sitting antenna on the phone. he says .355% of phone owners

apple admits the iphone 4 has issues. now, in a rare news conference today, apple guru steve jobs said we are not perfect and he offered what is essentially a plastic band-aid to fix the problem of dropped calls. julie watts was at the news conference and is now at an apple store in palo alto. >> reporter: it's a hot topic here a flaw and free fix. while it's what steve jobs said that got everyone's talking, it was a special guest appearance that's got everyone singing. ♪ [ music ] ♪ there's an awful lot of hoopla over the iphone antenna ♪ >> reporter: steve jobs opened his conference with an artist named sand boy on youtube and blamed the media for the hoopla for what's now been dubbed "antenna-gate." >> if you read all these articles, you would have thought, jesus, at least half our customers called in to complain or ask questions or be angry. >> reporter: it turns out only one half of 1% of iphone 4 customers have complained. at least according to apple. that's how some outside the apple store -- that's got some outside

. >> tom: apple has sold three million of the new phones in less than a month, we look at the apple fix and the furor. you're watching "nightly business report" for friday, july 16. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> susie: good evening everyone. wall street wrapped up a tumultuous week in the red, with most of the major averages closing the day down over 2.5%. tom, investors sold stocks on worries about the economic recovery, and discouraging quarterly reports and outlooks from general electric, citi and bank of america. >> tom: susie, today's losses erased the week's gains and all of the dow's 30 stocks were down. the dow fell 261 points, the nasdaq tumbled 70 and the s&p 500 lost 31. big board volume swelled to 1.5 billion shares. nasdaq volume settled well above two billion shares. >> susie: what troubled investors about today's quarterly results were not the top line numbe

>>> apple ceo says the company is work is its butt off to fix things. >> they were respondin to complaints about antna flaw that results in dropped calls. terry mcsweeney is live at apple's headquarters with more on wht he had to say. >> quite an event going on inside the apple headquarters. he is taking questions from the media. a lot of media from all over the country want fog know wh he was going to do to fix the problem. he says the answer is free bumper cases for anyone who owns one of the new iphone 4's. you start applying for them on monday but there was more than that. people provided entertainment and it was at the media for hyping antea gate. ♪ ♪ >> we're not perfect. we know that. you are know tha phones aren't perfect either. >> and with that jobs showed videos of other phes including the blackberry and samsung showing they fl problems with antennas, too, dependin on where you puyour hand. he says apple was picked out because e spot is easily spotted because a gap in the casing. the staiess steel case sitting antenna on the pne. he says .355% of phone owners have complained. he

putting a phone in a rubber case like this can actually fix the problem. appleidn't do anything immediately that caught this firestorm to get louder. this morning he told pr nightmare named they called it attending gate. the press conference look lot like steve's keynote speeches last about an hour-and-a-half starting with the good news. then moving on to an apology in which the ceo says the company is embarrassed that consumer reports will recommend its foam and apple was to do everything it can earn back the trust for its users. >> to pick ourselves up, we figure out what's wrong and try harder. and when we succeed the reward us by staying our users. >> he went to the store today and what happened? in >> cloyingly told me today the working of the fine details in a free cases yet a lot of it might happen on line of work and have to find out about that in the coming days. the app store employees are more than happy to tell you what they know they find things out on the need to know basis. you can see the entire press conference now live on our web site at www.kr

all you have to do is log on to the apple website and order your new one. they'll send it to you. n't come to one of the stores because they don't have enough in house. if you have already purchased one you will get a refund. cbs 5. >>> old spice plays a new trail for marketing these days. >> i am just oneridiculously handsome man. >> that's right. he is. an ad campaign that's gone viral thanks to a former oakland raider. ,,,,,,,,,,,,,, in your pr >>> old spice, that's the scent that many remember as the go-to gift for dad. remember they packaged it up for christmas $1.95. but when old is in your product's name, marketing it to a new generation may seem pretty tough. but michelle miller shows us the old man's gone, the young one's gone viral. >> reporter: what started as a single sexy ad in february is now perhaps the most successful internet marketing campaign ever. >> the whole commercial is just phenomenal. >> it's really funny. everything he does is so unexpected. >> reporter: this week the creators of the old spice body wash campaign rolled out a wave of over 180 different you

apple? we get an exclusive look inside the secret world of apple, on the day steve jobs admits the new iphone 4 isn't perfect. >> we're not perfect. >> so, does the flaw threaten the image of the world's most creative company. >>> plus, war on religion. what may be your source of strength is their source of mockery. tonight, we meet the leader of this faithless flock and get a first hand look at in your face atheism in the usa. >>> and, that orangey glow. from patchwork patterns to orange overdose, it's the attack of the spray tan, and no one is safe in tonight's "sign of the times." >> announcer: from the global resources of abc news, with terry moran, martin bashir and cynthia mcfadden in new york city, this is "nightline," july 16th, 2010. . . . >>> tonight on "nightline," sour apple? we get an exclusive look inside the secret world of apple, on the day steve jobs admits the new iphone 4 isn't perfect. >> we're not perfect. >> so, does the flaw threaten the image of the world's most creative company. >>> plus, war on relig >> >> good evening. we begin tonight with technology and one of ame

the nasdaq is also down as is the s&p 500. >>> well, apple is going on the defensive. what can we expect from this mornings press conference? ktvu consumer editor is live now in coopertino with more. >>> here is what we know at this hour. ceo of apple steve will hold a news conference at 10:00 to deal with antenna problems of the wily popular i iphone 4. that's very important. we have done things already yesterday, apple releases a free software fix to deal with complaints that the signal strength bar indicator was inaccurate showing a strong signal when there was none. the question for today is will apple admit to the antenna problem which proportedly arises when you hold the phone without a protective called the bumper, with the send receive signal. this problem has led to massive bad publicity including a nonrecommendation from no less than consumer reports and for many, antenna problems are hard to accept since antenna technology is one of the oldest. one man we met yesterday to buy verizons, motorola droidx. >> it blows me away something like that could step out d

just head to the apple website. can order yours there but don't come into the store because they won't be handing them out here and yes, you will get a refund if you already purchased one. >> thank you, julie watts. >> that song is going in my mind over and over again. >> reporter: i'm going to be singing it for the next week. my photographer keeps rolling his eyes. i can't stop singing it. >> it's catchy. >> thank you. >>> hewlett-packard is now closing its long-time cupertino campus. the computer manufacturing giant will transfer several thousand employees to its palo alto headquarters over the next two years. hp has gone through consolidation and layoffs over the past several years. the cupertino mayor says the announcement is a major blow to the city's tax revenues. >>> murders, robberies, all types of crime, san francisco is seeing fewer of them. today the mayor and police chief gave a report card from the first six months of the year. for january to june the total violent crime dropped 20% from 2000, 10% from 2

at the apple store he bought a new rubber casing. he will be reimbursed for the $29 he spent. >> do you think less of apple now? >> no. i i didn't have a problem with the new iphone. i am just doing it because i got the e-mail saying it would be reimbursed. >> one person who has a problem with the way it played out is apple's ceo, steve jobs. he took to the stage in up coulder tino trying to downplay the bad press. >> we think there is a problem , but we think it is affecting a small percentage of users. and we think some of the problem is inherent in most every smartphone. >> jobs began his presentation with a you tube video that partially blames the media for the publicity. >> ♪ the media loves a failure ♪ and a string of successors >> behind the video is jonathon mann who created the song in his berkeley bed m roo. he posted it thursday afternoon and got a call from apple asking to use it. >> when i screamed with delight i said, absolutely. >> a satisfied iphone 4 customer who said he was not paid by apple, mann considers his video

apple. three million iphone 4 usingers will get a new case, not a new phone. that's the big announcement from steve jobs today. anne makovec in palo alto with reaction from apple users about what's being called the death grip fix. >> reporter: customers are standing by steve jobs who held a press conference in cupertino even through antenna-gate. jobs said that this is not a serious problem, but he is willing to try to fix it for his customers to keep them happy. >> we know that, you know that, and, uhm....... phones aren't perfect. >> reporter: steve jobs announced that apple is offering some concessions. a free bumper case for every iphone 4. if you already bought one of these cases, you can get your money back. they cost $29 and apple is coming out with a software update to fix how the bars on the screen report reception. now, jobs showed where the problem was coming from on the iphone 4 explaining how people putting their bare hands over the black strip on the side in some cases leads to signal droppage. the so-called death grip, the case should fix that. he said thi

but one stands out from the crowd. apple's iphone has transported the entire industry. you could help me out -- >> you could tell miata if you are on wi-fi by just getting off. [laughter] >> while crowds flocked to the iphone, they discovered one little floor. it was not so clever at making calls. some users have found that, if they get their phones like this, the reception starts to melt away. apple's response was to not hold the phone that way or use it 25-pound piece of plastic to do with it. that has not satisfied everybody. customers recalled the days that they would have to go on the waiting list to buy one. >> the reception goes, this one is fading and reception. it should not be like that. my daughter has an iphone. it has not affected me. >> your help you with it? >> no, i am happy with it. >> steve jobs made a surprising admission. the phone is not perfect. it struck more calls than the previous version. -- the iphone is not perfect. it dropped more calls than the previous version. >> we are not perfect. we know that. you know that. and phones are not perfect

life this is the special edition of kron4 news news. cial edition >> apple ceo steve fesses up about the i phone protection problem and tonight is of look at what he says about the issue and how apple plans to make customers happy. but first is the mystery of the making. i bay area, who wishes to remain anonymous could be involved in a new fix with the gulf oil spill. engineers are keeping close look over the well and they want to make sure the cap is strong enough to hold back the oil and want to make sure there are no leaks. a bp official says so far so good, and no indication it is leaking underground. in the meantime though, and we are guarding that local, may have played a part in stock in the league. the we're joined with details now. >> to see how the stock was put on the well, they're now saying that the design that was ultimately used is very similar to see some ideas i gummer told about >> the christian and science monitor reports say six weeks ago uc-berkeley engineering professor who has a call from an anonymous, and you have is that idea on how

the store, a few people will go outside of the apple apps store. tom vacar, ktvu channel 2 news. >>> well, a cooler day around the bay area. it looks like the cooler temperatures are gonna stick around for a while. let's check in now with bill martin in the weather center. >> that's right, julie. with the cooler temperatures are lessened fire danger. air quality is pretty good. it's chilly. out at the beach at half moon bay, look at the nothing. it looks like one you would see from later in the evening like 8:30, 9:00 with the fog already into richmond. if you are in the avenues of san francisco, you didn't see the sun at all today. take a look at daly city, san francisco, pacifica just didn't come out. the highs today, here they are. they are cool than they were. the highs instead of 80s and 90s. they are just in the 70s. a coot pattern stays with us tomorrow. fog, sun, mild conditions right through the week. your forecast highs tomorrow, a lot of 70s, 77, livermore. a lot of upper 70s in the santa clara valley. we have good air quality. less of a

short walk from the home of apple ceo steve jobs. even tonight, despite the uproar over the reception problems, people were still buying. gill g era rdo just got his phone yesterday, he came back today to see if there's a fix to the problem. >> it's best if they come out and understand the fix to the problem. >> reporter: that's why a number of people are awaiting a news conference tomorrow at apple headquarters in cuperti no. >> i think it's important that they come out and acknowledge there's an issue. i think that's what consumers are looking for. >> reporter: today >> reporter: the wall street journal and bloomburg are reporting that apple engineers were aware of antenna risks a year ago. but jobs liked the design so much that apple proceeded with development. however, the problem caused the consumer magazine to not recommend the product. >> tomorrow what they can do is provide a rubber bumper, some kind of fix for the antenna. >> is that enough? >> it would have been if they did it right at front. >>. we might end up throwing app

women priests in the same category as pedophiles? >>> bruised apple. steve jobs put on the spot about all those dropped calls. customers asking, can you hear me now? >>> and star on the stand. how did george clooney wind up in court in italy today? a real life witness. >>> good evening on this friday night. all eyes on the gulf are fixed on that capped well this evening. we were tracking that image all day here. a clear picture of that cap with no oil to be seen. but the focus tonight, those crucial pressure readings now coming from the well. and we put together a gauge of our own to show you where things stand. just a short time ago, thad allen said the pressure stands at 6,700 psi. that's pounds per square inch. to the left of the dial, you can see the red area, that's trouble. that could mean more leaks in the well. to the right would be ideal. tonight, allen says the pressure continues to rise, but slowly being the key word, and matt gutman starts us off in louisiana. matt, how is the coast guard feeling about all of this? >> reporter: those numbers

two bites of the apple. this r.f.p. that we've developed now is a vast improvement, mainly because we had the time and we also had the input of the risk management folks from sfpuc. we learned a lot during the process. we have a navigant that's doing the marin county issue, weighed in more extensively on this r.f.p., as did local power. so we learned a lot. and there's still a lot of flexibility, but one thing that we did learn is that we don't know yet where the renewables, particularly the in-city renewables are coming from. so we need to put a timeline on the r.f.p. about how we're going to accomplish that and swap in-and-out resources with this bidder. so we'll still have a long-term contract potentially, but definite option-out points as we layer in the renewables. so i think we've just had a really good iterative process between the consultants and the staff at sfpuc. certainly local power and navigant. so we're planning on issuing this and not bringing it back to you until actually we have bidders. so

short walk from the home of apple ceo steve jobs. ht, despite the uproar over the reception problems, people were still buying. gill g era rdo just got his phone yesterday, he came back today to see if there's a fix to the problem. >> it's best if they come out and understand the fix to the problem. >> reporter: that's why a number of people are awaiting a news conference tomorrow at apple headquarters in cuperti no. >> i think it's important that they come out and acknowledge there's an issue. i think that's what consumers are looking for. >> reporter: today >> reporter: the wall street journal and bloomburg are reporting that apple engineers were aware of antenna risks a year ago. but jobs liked the design so much that apple proceeded with development. however, the problem caused the consumer magazine to not recommend the product. >> tomorrow what they can do is provide a rubber bumper, some kind of fix for the antenna. >> is that enough? >> it would have been if they did it right at front. >>. we might end up throwing apple under t

what they say about the issue and how apple plans to make customers happy. but first it is a mystery and indicate how odd bay area plumber who wishes to remain an ominous has a new fix for the oil spill. >> still live picture of the gulf of mexico and engineers are keeping a close look at the blown out while to make sure that the cap is strong enough to hold back the oil and make sure there are no leaks. as you see no oil is gushing at this error. there is no oil became i'm the ground and tonight we are learning that of local plumber may play a part in stopping the league. panchromatic joins us with details. dan? >> with all seen how the cap was placed, at the design is ultimately eat used is very similar to some ideas that plummer had told about. >> christian science monitor reports that six weeks ago engineering professor got a call from an unknown on the nest, or who had an idea how to stop the leak. he provided the professor with sketches of the containment cap that has been proved and it stops the design flow. they passed the sketches on to the coast gua

apple doesn't that that sort of thing in place. the recalls, you have to be able to take that individual thing and fix it again. ic we will see a make good, which we've seen from apple before in the form of an itunes card where you can buy the rubber bumper. no matter what happens, there this is historic. this is apple reacting to news as opposed to making it. >> tig of dreams and -- >> reporter: even apple co-founder steve has spoken out against iphone 4 telling the dutch journalist, quote, i think at&t's dead zone has been extended with this new phone. apple with all the control over product and message is not used to being the butt of the joke. >> i got the iphone and then the new bigger iphone. >> reporter:s on the "daily show" and jabs from the normally very stayed and uned a adventurous consumer reports from ch not now not only said they couldn't recommend the phone but tongue in cheek suggested the answer from the so-called death grip lay in using a strip of duct tape. >> however, it does spill the look, don't you think? >> you

you can go from typing to gesturing in one motion or do both at the same time. appleised new versions of their all in one eye mac computers. max feature faster processors beef up graphics of the biggest one in the lineup now offers a 27 in. display. apple is not ready to give demos of the new trackpad to journalist maybe by next week when i get my hands and won election to what it's like. it seems like a nifty idea of natural catch john will off the wait-and-see. the magic trackpad costs $70 if the new imax caused the 1200 for the 25 in. or a $79 for the 27 in.. for new more information on the apple products log on to apple dock,. gabe slate kron 4 news. >> rob lewis several colleges of looking to use apple's icon device as a tool in various courses. our web producer kimberly has details. >> oklahoma state duke university and university of maryland are just a few of the many schools that plan on giving some students i pad spirit instead of giving the device away the north carolina state university library has 30 i pad is going to loan to students and faculty. the stud

we call it "word on the street," and tonight's word is apple. it's the hottest tech company there is, but you may not have to buy apple to take a bite of its success. joining us now from the nasdaq, james rogers. he's a reporter at thestreet.com. >> thank you for having me. >> tom: how profitable is it for these companies to provide parts or services for apple's iphone or ipad? >> i think it is an absolutely huge deal for these companies. apple is something of a modern phenomenon, with regard to consumer technology. but of the problem in working out who is working with apple, apple seems to have its suppliers locked into this almost murderous code of silence. basic many we have to break open the latest iphones and ipods to see who is actually in there. >> there is a lot of reverse engineering that happens with this product launches with the iphone and ipad. how can investors be sure that an investment is in fact an apple supplier? >> it is tough, you know. as you move forward, apple is notoriously secret. and like a lot of major technology builde

the school has ever held. we're not perfect. that s what apple c-e-o steve jobs has to sa with the >>> we're not perfect. that's what apple's ceo jones has to say about problems with the iphone iv. a debut that didn't go quite as plans and complaints of dropped calls, they've faced pr problems. it's what he said that's got everyone talking. it was a special guest appearance that had many singing. >>reporter: he opened with a you tube song and went on to blame the media for the hoopla. >> if you read all the articles out there, you would have thought at least half of our customers must have called in to complain or ask questions or be angry. >> it turns out only one half of 1 percent of iphone iv customers have complained, according to apple, and that has some feeling sorry for the tech giant. to a certain extent others agree. >> they're so big and mainstream that they have to answer to a lot more voices. so now that apple has finally showed one of the first kin beings in their armor, everyone is ready to go at it. >>reporter: it's something some knew about for a while. >> we knew the bar would go down a l

was announcing the quarters earnings, brophy was going into this apple store to buy a new mac computer, this after getting an i pad for her birthday. >> the i pad definitely turned me on to apple products. >> reporter: the numbers follow a volatile few weeks for apple after highly publicized problems with the antenna for some iphone users. that issue seems to have had no effect on sales. >> they basically said, even since then they show no slow down in demand and in fact, they are selling every i four that they can make and they are still backlogged in stores from two to three weeks at at&t stores. >> reporter: but the antenna issue did keep this man from buying the phones for his company. >> we decided to stick with the blackberry until they fix those issues. >> reporter: one analysts believes numbers will only rise when the device is released to all 88 countries an during the more busy holiday shopping quarter. reporting live, maureen naylor, ktvu channel 2 news. >>> and just a quick correction here, i misspoke a moment ago apple made $3.25 billion in net profits. not 325 bil

the morning. joe vazquez, cbs5. >>> apple has no plans to recall the iphone 4.cording to the wall street journal. users have been complaining, though, when they hold the phone a certain way, calls are dropped. researchers at consumer reports this week said they can't recommend the phone because of the issues. apple will talk about the problem and potential fix at a rare news conference tomorrow morning at 10:00. >> on this issue they've been really dismissive and kind of denied that there was a problem and they're the kind of company that almost never responds to complaints about hardware flaws. so the fact that they're holding a press conference at all is a very big deal. >> the journal also reports apple engineers knew about risks associated with the phone's antenna as early as a year ago, but ceo steve jobs apparently liked the design so much that appear went ahead with the development. -- apple went ahead with the development. >>> some of the eul should drop some of those letters. researchers sampled 19 brands sold in the bay area. sacramento and los angeles

why the next 48 hours are critical. in just a few hours - apple a rare news conference, to talk about problems with the new i-phone. what insiders expect to happen. plus, check your fridge. a huge lettuce recall.. how to tell which greens should be tossed. join us for cbs 5 eyewitness news early edition ... beginning >>> on the "cbs morning news," here's a look at today's weather. the heat is on across much of the nation with triple digit temperature moving into parts of the northwest. and 90s all the way from the california coastline through the midwest and into the northeast. there will be scattered storms in the northeast. >>> here's another look at this morning's top stories. the oil has stopped flowing into the gulf of mexico. the new containment cap is working so far but it is a temporary fix and the next 48 hours will be critical. >>> the senate completed passage of a sweeping financial overhaul bill. it imposes new controls on banks and financial institutions. president obama says he'll sign it next week. >>> with congressional passage of

phones have this problem and says the majority of apple customers never complained if you try you can keep the calls from dropping. >> jobs cited data showing iphone 4s do drop more calls but less than one call her 100 blaming the fact old yerl models have insulating bumper case autos a lot of people have told us bumper solves the sig cal strength problem. consumer reports we've heard it from a lot of people. why don't you just give everybody a case? >> if only jobs influence reached apple stores today nchl aloe alto customers paid $29 cash for a case, send proof of purchase later. >> because it's not official yet. >> but it's official. steve jobs said it. >> i told the same thing to the apple guys. and, i need this weekend. >> there is a negative turned positive. >> part of what is going on in 22 days is not just data gathering but or chess straighting a response. >> a response to a crisis jobs says came naturally. >> i see some of the people jumping on us now. it's like i'm not sure what you're after here. would you rather we're korean companies instead of american? do you not like

the cap holds. good morning. i'm teresa garcia. >> i'm eric thomas. when apple talks, business world lesson and today the tech giant is going to hold a news conference that will address problems with their antenna. terry, the big question now, did apple know about this problem before the phone hit the stores? >> bloomberg news is reporting that a senior antenna engineer told steve jobs about this problem early on, that there was problem with the steel casing on this phone which serves as an antenna and this could be a problem. they went ahead with the phone anyway. it is a problem, one, if you hold the phone in such a way that you bridge the gap in this steel casing, it serves as an antenna, your signal strength fades, calls are dropped. another problem, public relations. this iphone 4, like almost all apple products is a runaway hit. how the company deals with it is important for the company going forward. there are many solutions being discussed. >> if you are not physically touching that with the hand then the problem goes away. a bumper or consumer reports,

intriguing announcement to say the least. >> well, that is the big question tonight. what will apple say at tomorrow's news conference. pc world has been predicted what they are likely to say. many are expecting them to come out swinging in defense of iphone 4. >> the iphone 4 users will be watching, as a. -- >> i will start out defending, they have smart engineers, who i don't think went about this -- there is a reason i believe they did this. they will defend the logic that went into this. >> expect to hear about the bumper casings, when you use it with the iphone 4, it fixes the antenna issue. >> give them a store credit to give them a case. >> you may hear a special coating around the middle band of the phone, would solve the issue. >> it is a better insulation. the hand acts as a plug for the antenna, as opposed to a signal booster. >> one would you may not hear is the world recall. >> you look at when plukts are recalled, there tends to be a safety issue. this isn't a safety issue. the phone drops calls, we are all used to that. >> the iphone is selling l. >> come out, and lead

this is historic in the tech world. applecade of success with products and this is a big deal. there's a backlash and a bad image right now even the stock is been hit a little bit. they really have to deliver tomorrow on this issue. >> aspect steve jobs will be there? >> i do think it will be there i think it needs attention i think he will be there. >> this refers video on what the issue was with the intent of right there were used to the finger-pointing at the lower left corner the issue is intended it's built into that stainless steel frame on the phone for one your skin covers the area reception will drop. it's not every following its certain phones in certain areas. i've had many friends with no problems with that to or get on the weapon. let's roll the next video. there's a simple solution that's a proper case these costs between 10 and $30 and then that stops your skin from touching the intent of causing the problem pretty simple solution. the i phones cost $600 another $200 subsidize. $600 daddy should have a case any

the going price for that is about $30 so it might be less than that. apple is notoriously tight-lipped about what it plans to sort out exactly sure about the news conference, but i have to say the timing is quite mysterious because earlier this week the magazine consumer reports which a lot of people rely upon it don't make a move before reading, the magazine refused to give the island for its recommendation. for now reporting from cupertino a will tran, kron4 news. >> will customers are still showing up at apple stores that quarter the iphone for they have some doubts but it still works. >> this just a minor thing and it is probably pretty easy to fix so they'll get back pretty soon. >> up until this fall and they could put an apple and a broken out a prole bought it but they've done a great job with this. and dropping so many calls and the point of having a phone is to call. so i just talk about returning it couple makes fantastic products this double here and i hope to make good on the stumble in and stop denying that there is a problem. >> to they're sti

the antenna. users come into contact with it and calls get dropped. appleg the problem has been blown out of proportion. fewer than 3% of the more than 3 million iphone 4 phones sold have been returned. >> you read all these articles out there you would have thought at least half our customers must have called in to complain or ask questions or be angry. >> he doesn't look angry. apple does admit that it knew the reception bars go down if the phone is gripped in a certain way but jobs says similar smartphones have the same issue. if you have an iphone 4 you can log on to the apple website to order your free case. if you already bought one, apple promises a refund. >> a new falling for old spice courtesy of a viral add campaign. >> i am a ridiculous handsome man. >> how ads that never hit t.v. are changing the marketing game when we come back. , , auto sisir? finding evytything okay? i work for a different insurae e company. a auto lili's's stst getti a little tooxpxpensive soe bubuild a policy to fit your budget. ♪ ah! wishe e had this. we j just tell peopl

this is the one spot you can't touch when you hold the iphone 4. appled of the design he called a brilliant engineering that actually uses the stainless steel band as part of the antenna system. the salt and terra short is why fight the spot where the meat is right where and goes. when deerskin touches bare metal you become the antenna and you do not connect well. holding it in the death we made cellular if strength disappear. and so did consumer reports. apples and engineering was so brilliant it will not recommend iphone for. apple holding a press conference they could announce a recall but analysts say would cost the company won acclaim $5 billion so recall is not likely. they could stick to their guns saying is the phone a different way or by case that was a may be. they might highlight the software updates. until now they say it's been showing more bars and you actually have making the reception problems in worse than it does analysts say that is likely. some speculate free bumper cases they cost $30 in the store but only about a dollar to make the

the iphone 4 to its consumers. and so this is where we are today. apple has called a press conference, unusual to say the least. ive at apple headquarters, and in hours they are going to hold that conference at 10:00. they have come under fire from customers, experts and even been sued since the iphone 4 was released. it has had antenna issues. for those of you unfamiliar with the phone the antenna wraps all the way around it and if the left hand corner is covered signal strength drops dramatically. experts are telling us the bumper wrap around the entire phone and eliminates most of the problem. so today will apple offer free bumpers to customers who have already purchased a phone? will apple apologize? both, or nothing even close? >> steve jobs can do magic. if he does the magic at this conference and the reality is all you need is that bumper. there is still a chance he might still be able to turn it, but, if they had done this at the beginning it would have been a sure thing and now it is late people are really upset. >> reporter: yesterday new york senator charles shumer sent an open letter to steve jobs ca

the company is holding a news conference today. but published reports say applewill not recall the device. the phone has been hampered by reception problems caused by its redesigned antenna. >> apple would do more harm than good in recalling the iphone. it would make this problem worse, not better. this is not like this is a car that doesn't slow down when you don't apply the brakes. it's a cell phone that has some signal issues. let's be honest. pretty much all cell phones have signal issues at one time or another. >> apple was reportedly aware of the problem as early as a year ago, but went ahead with development because steve jobs like the design so much. >>> more bragging rights for american automakers. for the first time in 13 years, they top imports in j.d. powers vehicle survey. ford was the biggest winner, winning five awards, including its fusion. earlier this year, domestic brands edged out imports in j.d. powers' quality study. >>> if you think bigger is better, there's a newburgher for you. carl's jr. and hardee's are testing a newburgher. that's noth