Apple, the electronics company, says that its provision of free cases will cost about $175 million in revenue.

The company, which announced record earnings this quarter, offered the bumper cases for free to iPhone 4 in response to what CEO Steve Jobs has dubbed "antennagate. Apple has been mired in controversy due the iPhone 4's weak reception, specifically when the device is held by its lower right side.

Apple predicts that the free cases will result in deferred revenue. The $175 million will be listed in company's books as a liability. Apple says that to help mitigate the cost on the bottom line, it will expense what it pays on the cases.

The figure is a cost estimate, it is possible that Apple would have to pay more than the $175 million. The final number will depend on the sales of the iPhone 4 and how many customers avail of the offer.