I'm sure they are fixing the issues in phones they are currently producing, but that doesn't help the ones that are already out there. The existing customers that may feel like they are getting the shaft on something that is defective, and may not return to apple for their next high end phone purchase, or next mp3 player purchase, or next computer purchase. At this point if they don't bend over backwards they stand to lose a lot of sales. The short term cost is worth spending to save the long term brand appeal, but it sounds like they are banking on it not being a big deal and that their customer base is loyal no matter what. That's not a good stance to take, and I hope if they continue this path that it bites them in the ass.