It was late June and the streets were buzzing with excitement about the new iPhone 4.

Two of the guys at work were flipping out and blabbing like chatty Kathy’s about the cool features they had on their new phones and how long the line was to get one.

About twenty minutes went by when I began noticing that folks online were already complaining. Among the top of these complaints was a reception issue which was later found to be due to a faulty antenna.

The complaints continued to pour in and Apple just sat defensively silent.

Since then the Apple corporation has done very little to calm the worries of their patrons.

They have even managed to scare off potential clients. What we’re now witnessing is a PR nightmare.

Had they managed their response better they could have avoided their falling stock prices and collapsing client base.

However I do believe they’ll be ok in the long run for two reasons: They still make good products, and people can be forgiving if you make it up to them (especially when it comes to technology). And per Apple’s most recent press conference (see the video below) they hope to have “made it up” to their customers.

Apple forgot that the cardinal rule when dealing with a mob of angry customers is; SHOW THEM YOU CARE.

Instead of avoiding responsibility and trying to keep things quiet, Apple should have stopped everything right away, recalled the units and made a loud and heart felt public apology.

People want to feel as though they are dealing with companies that care. When you deny something or try to keep things quiet people feel betrayed. Making a bad product once can get you in trouble, but betraying people will make them hate and fear you.

Unfortunately I think this is a lesson Apple is learning the hard way….

But tell us what you think.

Click here to view the embedded video.