Calling the hype “blown all out of proportion,” Jobs vowed that Apple wouldn’t stop until “every user is happy” and explained the company’s plan for solving the problem. First, Apple already has released iOS 4, version 4.0.1, which “fixes the wrong formula” that the iPhone 4 uses to calculate how many bars to show for signal strength.

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Second, Apple will give every iPhone user a free bumper case, insulating the antenna from human contact and preventing the loss of signal. Users who already have bought a bumper case will get a full refund. These free cases will be available for every iPhone 4 purchased through September 30. Users who still aren’t happy can bring their undamaged iPhone 4 back to the store for a full refund, with no restocking fees, within 30 days.

“We’ll re-examine this in September and decide whether to keep going, or maybe we’ll have a better idea,” Jobs said.

During the conference, Jobs addressed some additional issues. For example, he said that there have been some reported problems with the phone’s proximity sensor and that a software update is being developed. The white iPhone 4 will start shipping later this month. And on July 30, the iPhone 4 will be released in 17 more countries.

“We are gonna take care of everyone,” Jobs said. “We want every user to be happy.”

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