Apple reported all-time record revenue of $15.7 billion and net quarterly profit of $3.25 billion, or $3.51 per diluted share for its fiscal 2010 third quarter ended May 27, 2010 at Apple’s Q3 earning call.

During the Q&A session at the end of the earning call, not surprisingly Apple’s COO Tim Cook was asked some questions about iPhone 4’s antenna issues.

When he was asked whether the iPhone 4 antenna issues had impacted sales, he responded:

Let me be very clear: We are selling every unit we can make.

When he was asked to further clarify on the effect of antenna issues and if there were more complaints and returns, he reiterated:

My phone is ringing off the hook with people asking for more demand. So hard to say. Returns are less than for iPhone 3GS, and the ones for this specific issue are extremely small.

He also said that Apple doesn’t purposefully creates a shortage of their products for buzz:

“We do not purposefully create a shortage for buzz. I’m not sure where that comes from. Demand for iPhone 4 is absolutely stunning.”

When we had looked at smartphone antenna performance and their weak spots, we had mentioned that there are few benefits of having an external antenna (in case of iPhone 4) such as better signal quality (since its not in a casing), better battery life as Apple has been able to squeeze in a bigger battery, better aesthetics, more structural rigidity but it is at the expense of a more visible and sensitive “weak spot”. That is the reason Apple had to explain the death grip problem after iPhone 4 was launched and not with earlier iPhone models.

We felt that Apple had done the right thing by giving away free cases to all its iPhone 4 customers and offering a full refund to customers who are not happy getting a free case even though it had found that it is affecting a very small percentage of users based on the data it had collected.

But we have maintained that at the end of the day, customers will vote whether the trade-off is a deal breaker. According to Apple, demand for iPhone 4 is stunning and they’re selling every iPhone 4 unit they can make, which clearly shows that customers don’t think it’s a deal breaker.