An illustration of iPhone 4's antenna troubles. Source: gadgetsdna.com

 

With Apple’s earnings announcement coming in less than 24 hours, analysts on Wall Street are reiterating their Overweights to Apple.  My confidence in the company is still strong, but I did adjust my revenue projections down slightly (reflected in all 3 models – Operating, LBO, and Merger).

“Antennagate” – as bloggers are now calling it – was a reminder that Apple is not infallible. While I do not believe the combined costs of rubber cases and refund policy will derail the growth train Apple is currently riding, I do see it as an important event for the company’s competitors. The only thing stopping iPhone from completely cornering the smart phone market used to be AT&T’s status as sole service provider. With this recent design flaw, consumers may take a second look at other options – which could erode future Apple profits.

The company is set to report earnings at 5:00 pm, Tuesday July 20, 2010.