Apple is offering a free case to every owner of its iPhone 4.
Apple boss Steve Jobs unveiled the offer at a press conference called to tackle the ongoing speculation about the iPhone 4's antenna problem.
The case will help overcome a widely reported issue in which phone signal strength was drained when the phone was held a certain way.
Declaring "We're not perfect", Mr Jobs said reception problems were endemic throughout the smartphone industry.
To get their free case, owners will be able to apply via the Apple website from 22 July. Mr Jobs said Apple could not make enough for all owners of the phone but would source a supply and offer a range of cases.
Based on retail prices of iPhone cases, supplying one to all three million customers could cost Apple about $180m (£118m).
Apple will offer the free cases for phones purchased before 30 September.
Mr Jobs also extended an offer to iPhone 4 users to give them a full refund within 30 days if they were still unhappy with the handset's performance.
"They had to do something," Van Baker, research vice president at Gartner, told BBC News.
"The buzz kept getting louder and louder and louder and the evidence kept mounting more and more and more. They just couldn't ignore it."
Brian Marshall, managing director of Gleacher & Company, said he did not think the negative headlines hurt Apple in the marketplace though he was pleased to see it take action.
"This has been blown out of proportion and is a media firestorm," he said.
Common problemApple called the press conference at which the case offer was made in response to ongoing speculation about the antenna issue.
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