(CNN) — After a presentation saying the iPhone 4′s reception problems have been “blown way out of proportion,” Apple CEO Steve Jobs said Friday that all owners will receive free cases to fix the issue.

People who already paid for a case, which reduces interference, will get a refund, Jobs said.

“We’re not perfect; phones aren’t perfect,” Jobs said. “We want to make all our users happy.”

Customers will be able to visit an Apple store for a free case between now and September 30. Jobs said Apple has not made enough bumpers — hard rubber bands that cover only the edges of the phone — to offer them free.

The iPhone 4 set Apple sales records after its release June 24, drawing positive reviews from tech bloggers and almost religious fervor from Apple fanatics who lined up for hours to get their hands on one.

The smartphone has sold more than 3 million units, Jobs said Friday, and has been the most successful product launch in Apple history. He maintained that, despite the reception issue, the phone remains “our best product ever.”

“It’s not like Apple has had its head in the sand on this,” Jobs said. “It’s only been 22 days.”

But just hours after its release, reports of a problem with reception began surfacing.

// <![CDATA[// Analysts found that holding a certain spot on the metal band around the edge of the phone leads to interference, causing weakened reception and, sometimes, dropped calls. The band houses the phone’s antenna, part of a design that made the sleek iPhone 4 about 25 percent thinner than its predecessors.

The complaints reached critical mass Monday, when vaunted product tester Consumer Reports gave the phone a “can’t recommend” rating after verifying the problem.

The report pushed the problem onto the sets of late-night comedians, creating a rare public-relations crisis for Apple, which has enjoyed positive reviews for years for products including its iPhone, iPad and MacBook laptop computers.

Read CNNMoney’s coverage of the Apple announcement.

Jobs set up Friday’s announcement with a lecture-style presentation, noting that all mobile phone antennas have problems and showing what he said was video of similar reception issues on other smartphones.

Even as he made the announcement, Jobs said that returns of the iPhone 4, which have been 1.7 percent, have been lower than the 6 percent return rate for the previous generation iPhone 3GS.

He did acknowledge that the iPhone 4 drops more calls than the 3GS but said the difference is less than one call per 100.

He said only a small percentage of users have been affected.

“We care about every user,” he said. “We’re not going to stop until every user is happy.”

Jobs bristled when asked about media reports that an Apple technician told him about the reception problem before the phone was released.

“Total bulls—,” he said.

He wrapped up the news conference with a parting shot at media coverage of the issue.

Fortune: Did Apple solve its PR problem?

“I wish we could have done this for you in the first 24 or 48 hours, but then you wouldn’t have had as much to write,” Jobs said.

Early reactions to the announcement were lukewarm in the online tech community.

“From a customer’s point of view, this is a really unsatisfying response, because a lot of people feel like the bumper cases — or cases of any kind — are just not that pretty,” said Dylan Tweney, an editor at Wired.com. “They definitely make the phone look less attractive than it does by itself.”

Why iPhone case makers aren’t hitting the jackpot

Huffington Post tech columnist Larry Magid wrote that while he was “pretty pleased” with Apple’s response to a relatively minor issue, he thought Jobs sounded unnecessarily defensive.

“Truth be told, iPhone users can get a signal just as well as with any other phone as long they don’t put their finger on the little crack in the lower left side of the wraparound metal antenna,” he wrote.

Responses from CNN Tech readers ranged from dismissive to upbeat. “I think the whole thing is a big fuss over nothing,” said a reader responding to the CNN Tech feed on Twitter. “It certainly won’t stop me getting one. The free case is more than enough.”

Tweney acknowledged that the problem is relatively minor in the grand scheme of things but that by downplaying it so much, Jobs and Apple run the risk of still not seeming sympathetic.

“This press conference does absolutely nothing to alleviate the impression that Apple is an arrogant company led by an extremely self-confident, arrogant CEO,” he said. “There’s no doubt about that. But they believe they’re in the right and that there’s not a serious problem.”

In other iPhone 4 news, Jobs said that white phones will be shipping by the end of July. So far, only the black version of the phone has been available. He also said Apple plans to release the phone in 17 more countries on July 30.



You have to love Steve Jobs! He is a marketing genius – not only is he addressing the issue but for everyone who purchases a new IPhone 4 until Spetember 30th, he is giving a free bumper for the case.  Also, you will get to select from a variety of different styles.  What is the cost of the case, less than a dollar but now that is one up from his competition and assures a possible new customer.

Contact Glenn Remler for your Social Marketing or Online Marketing needs.
glenn@spikerushmedia.com

Brand loyalty and customer engagement are at an all-time low as more companies are vying for attention in an increasingly crowded and competitive landscape. This has only increased with the additional messaging customers are receiving from networks like Facebook and Twitter.  As a result, it has become increasingly difficult to cut through the clutter and build meaningful conversations.  In order to foster these relationships, marketers must stand out and present a memorable and unique customer experience. Consumers have come to expect brand interactions that offer value beyond monetary savings. They expect to be entertained, informed and heard.

With the power of e-mail marketing and the emergence of social media, companies now have the ability to communicate with customers in the mediums where they spend most of their time online.  The conversation has changed and that conversation should be initiated with consumers in their channel of choice.  According to Forrester Research, social media will see the fastest growth of any online media channel in the next four years. Within the same timeline, Forrester predicts that e-mail users will go from 145 million to 153 million.  Although some have pontificated that e-mail will be replaced by social media, this is clearly not the case. Additional signs that point to this:

• 90% of US adults today continue to share information via e-mail
• Almost all social networking sites require an e-mail address for registration and updates are sent via e-mail
• Social networking is often restricted or banned in the workplace
• While still less expensive than most channels, ROI can be difficult to quantify with social media marketing

Clearly, e-mail and social media are closely connected. E-mail provides a channel that can drive recipients to social media networks instead of landing pages, and social networks can be used to acquire customers or reinforce a promotion being sent through e-mail. Here are a few tactics that combine e-mail and social media that enable you to drive acquisition and engagement across your audience:

• Present a united front. Whatever you are promoting in e-mail, promote through your social media presence. Conflicting promotions or disconnect in branding causes confusion.
• Promote e-mail subscriptions on social networks. Companies can use landing pages, sign-up forms, custom applications and other methods to effectively acquire e-mail addresses and ultimately extend your reach.
• Provide share-worthy content. Make sure that when you ask an e-mail recipient to share e-mail content that it offers value. Customers will only share if they feel friends and followers will benefit and reciprocate.
• Promote community. If you don’t show your customers that you are listening closely to them, you are wasting valuable time and money.

These efforts must support one another to be truly effective. While integration might take some thoughtful work, brands that ignore this need will be at a severe disadvantage.

George DiGuido is VP of e-mail marketing at Zeta Interactive.