iPhone 4 fix: Free cases or a full refund

FRESNO, Calif.

Steve Jobs was frustrated at Friday's press conference at the amount of criticism the new iPhone 4 has received. He says the phone's problem has been blown way out of proportion. But Apple will do whatever is necessary to make customers happy.

At a press conference at company headquarters in Cupertino, Steve Jobs apologized to consumers who've had problems with the much-hyped iPhone 4.

The major complaint among users of the new phone is reception problems that have lead to dropped calls -- twice as many as with the previous model.

David Ruiz of iPhone Medics said, "I would say about 30% of our calls for repair have been on that drop call issue."

The problem is caused by the phone's outer antenna. But Friday Jobs said the phones themselves don't need fixing. He announced Apple would give away free protective cases that would remedy the problem to everyone who purchased the phone.

Ruiz believes it's a good solution, "When you interrupt the contact between the user, their skin and the antenna that seems to help alleviate some of the problem."

While Apple has received a lot of complaints since the launch of the new phone in June -- customers we spoke with outside the Apple store at Fashion Fair Mall are still convinced no other phone compares.

Starting late next week, everyone who bought an iPhone 4 can go to Apple's website and sign up to get a free case in the mail. If you've already purchased one, you'll be reimbursed.

If you're still unhappy with your phone Apple will give you a full refund and new iPhone contracts with AT&T can be cancelled without penalty.

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