Apple held a rare news conferenceon Friday to address complaints about reception issues with its iPhone 4 smartphone.
CEO Steve Jobs said the company will give iPhone 4 users a free phone case, and said the situation has been "blown so out of proportion, it's incredible."
Jobs also said customers can return their phones if they are still not satisfied for a full refund.
The iPhone 4 sold more than 3 million units in its first three weeks on the market, making it Apple's most successful product launch based on initial sales.
Consumer Reports, which had been critical of the product and had refused to give it their endorsement, said Apple's actions were "a good first step" toward identifying and finding a solution for the signal-loss problem.
"Consumers deserve answers and fairness," Consumer Reports said in a statement.
What do you think: was this the right response from Apple?
Take our poll and drop your comments in the box below.