AmTech Says iPhone Power Adapter Exchange a 'Non-Event'

Following an announcement from Apple (Nasdaq: AAPL) late Friday that its ultra compact USB power adapter for the 3G iPhone was reported as having problems with its metal prongs breaking off and sticking in outlets, American Technology Research is out with a note saying the development is a "minor speedbump and non-event". The firm maintains its Buy rating and $205 price target on shares of Apple.

Responding to the issue, Apple said that it will offer a free product exchange and will maintain a high level of customer service. Although the problem will likely only impact a small number of users, the firm believes that Apple is "doing the right thing". AmTech said it "found little to no disruption of iPhone shipments" and also that the problem was not a chip issue.

Apple, Inc. designs, manufactures, and sells personal computers, portable digital music players, and mobile communication devices, as well as related software, services, peripherals, and networking solutions worldwide.