Apple announced press conference at its Cupertino headquarter tomorrow

On July 16, 2010, Apple will hold a press conference at its Cupertino headquarters at 10 a.m. Nobody knows what will be discussed at the conference but it is widely speculated that the company will talk about the antenna issue and the recall of Apple iPhone 4.

The antenna problem of the new iPhone 4 has become serious. Initially, Apple said that owners should avoid holding the phone with their left hands. Then it said that a flawed formula to calculate the signal strength is the root of the problem. Recent Consumer Reports study revealed that it is a design flaw and announced that it would not recommend its readers to buy the Apple iPhone 4.

Business Week reported that Apple Inc.’s senior antenna expert Ruben Caballero, warned Steve Jobs about the antenna of the new iPhone 4 during its early design phase. Even a carrier partner also said that the new phone owners would face trouble over making calls.

Several iPhone 4 owners even went on to file lawsuit against Apple for negligence, misrepresentation and other offenses. Last week, US district court of California granted class action status to a lawsuit filed in 2007 that charged Apple and AT&T of collaborating to force iPhone subscribers to adopt a two-year contract from AT&T.

Rumors of an iPhone 4 recall are getting stronger but it is not going to be easy. Analysts estimated that a recall would cost Apple $1.5 billion and providing a free bumper would cost only $150 million.