Mr. Apple himself came down from the mountain today and stepped out on the porch of Cupertino and told everyone to calm down some more. He showed how every phone-maker has to deal with the laws of physics, but explained that Apple deals with those laws better than others do, and that the iPhone4 deals with them even better than the iPhone3 did. He thinks if you had bought a case for your iPhone4, like you did for your iPhone3, some of this reception problem would take care of itself. So, every iPhone4 user will get a free case; if you already bought one, you’ll get a refund. There has been an update to the OS; you should do the update. If you are still unhappy, you can bring the undamaged phone back for a refund.

Mr. Jobs says Apple loves its users and wants them to be happy. He says Apple tries hard to please its users and when there is a problem, they try their best to solve the problem as fast as possible, which is what they are doing.

His summary: “We think we’ve gotten to the heart of the problem, and the heart is that smartphones have weak spots. And so for those small number of customers that are having problems, we’re going to give them cases, and for those that are still unhappy we’re going to give them a full refund.”

When asked about the future models: “We’re still working on this — we’re happy with the design. … we’re getting a lot of reports from customers that it’s way better than the 3GS. I don’t know what our next antenna design will be — maybe our wizards in the antenna lab will come up with something better. But looking at the data, we don’t think we have a problem.”

When asked if he feels it necessary to make any apologies: “To our customers who are affected by the issue, we are deeply sorry, and we are going to give you a free case or a full refund. We want investors who invest in Apple for the long haul, because they believe in us. To those investors who bought the stock and are down by $5, I have no apology. If we hit a bump in the road, it’s like having kids.”

News at Eleven, as promised.

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