As soon as the iPhone 4 came out, there were problems with reception and usability to the point where Consumer Reports refused to recommend it to consumers. For example, it was discovered that issues like the “death grip” reception problem were hardware-related, not software.

iPhone 4 Death Grip

iPhone 4 Death Grip, Courtesy of CultOfMac.com

This may result in Apple recalling the iPhone 4, which Cult of Mac’s website mentions that, at first glance may be disastrous for the venerable company.

By contrast, Google is reportedly teaming up with Zynga, the maker of the famous online social game Farmville, to create Google Games for the Android phone.

Zynga

What this means for Apple’s future remains to be seen. They simply rushed out a product that wasn’t ready. On the other hand, it might surprisingly boost Apple’s sales long-term. We’ve seen past failures like Windows Vista, and more historically Coca Cola’s “New Coke” in 1985, only to generate much higher sales with Windows 7 and Coke Classic products, respectively.

For iPhone users right now, stick with the 3GS and wait for a potentially killer iPhone 5 to come out.

This has a huge impact in the Mobile Marketing industry in the sense of advertising. If more users are switching to the Android right now, then it’s more important short-term to optimize mobile websites and ads for Android smart phones. Long-term, leveraging iAds for websites and optimizing mobile sites for the iPhone are important goals.