Feb 7 (Reuters) - Fund manager David Einhorn's Greenlight Capital sued Apple Inc, saying the company needs to do more to unlock value for shareholders.

Einhorn, a well-known short seller, is long Apple shares and said in a television interview on Thursday that while he admires the company, it has a "cash problem" that it needs to fix.

Greenlight filed suit in federal court in New York to force Apple to modify a proposal in its proxy, which Greenlight believes does not conform to regulatory rules.

Greenlight said it is opposed to the proposal, No. 2 on Apple's proxy, which the firm said would remove Apple's ability to issue preferred stock from its charter.

In a filing with the U.S. Securities and Exchange Commission, Greenlight said it was "dissatisfied with Apple's capital allocation strategy."

Apple could not be immediately reached for comment.

In a CNBC interview, Einhorn said shareholders would be happy to received preferred stock with a 4 percent yield.

Calling Apple shares "utterly misvalued" at current levels, Einhorn said the company no longer needs to grow at the near-triple digit rates of the past.

In a statement, Greenlight said it spent part of 2012 in discussions with Apple on the idea of perpetual preferred stock, but that the company rejected it last September.

"We understand that many of our fellow shareholders share our frustration with Apple's capital allocation policies. Apple has $145 per share of cash on its balance sheet. As a shareholder, this is your money," Greenlight said in an open letter to other investors.

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  • The Maps App Is A Mess

    If you've been following any coverage of the new iPhone, you've heard that iPhone 5 users (or any iDevice users who have updated their gadgets to iOS 6) are complaining rather loudly about how terrible the Apple Maps app is. The new navigation app, which has replaced Google Maps in new versions of iOS, has been seen to <a href="http://www.huffingtonpost.com/2012/09/20/apple-map-fails-ios-6-maps_n_1901599.html">mislabel cities</a>, <a href="http://www.huffingtonpost.com/bianca-bosker/apple-ios-6-maps-debacle_b_1900211.html">fail to locate adresses</a> and other problems. Perhaps worst of all (for city-dwellers, at least) the new Maps app <a href="http://www.huffingtonpost.com/2012/09/19/ios-6-maps-no-transit-directions-apple_n_1896684.html">doesn't provide transit directions</a>, which many became dependent upon with Google Maps.

  • It's TOO Thin And Light

    Given that the new iPhone is touted as Apple's "lightest iPhone ever," the company must be surprised to hear people complaining that it's <em>too</em> light, an issue that <a href="http://gizmodo.com/5945662/the-weirdest-thing-people-hate-about-the-iphone-5">Gizmodo has noticed users raising on Twitter</a>. "It's following Samsung in the flimsy-feel department," <a href="https://twitter.com/befroggled">writes @befroggled</a>. "Feels like a toy," <a href="https://twitter.com/HERSEYSDARK">tweeted @HERSEYSDARK</a>. At 112 grams, <a href="http://www.huffingtonpost.com/2012/09/12/iphone-5-features_n_1877637.html?utm_hp_ref=apple-september-event">the iPhone 5 is 20 percent lighter</a> than the previous generation, the iPhone 4S.

  • The Updated Siri Is Worse Than Your Local Weatherman

    The new Siri for iOS 6 is sometimes confusing cities with the same name but in different states. (<a href="http://www.huffingtonpost.com/2012/09/22/apple-maps-ios-6_n_1906005.html">A similar problem occurs in the Apple Maps app</a>.) For example, <a href="http://www.macrumors.com/2012/09/24/siri-delivering-wrong-weather-forecasts-for-common-city-names/">MacRumors noticed</a> that asking for the weather in New York City yields temperatures and forecasts for New York, Texas. Siri is similarly mixing up the St. Louises in Missouri and Georgia and the Carrolltons in Texas and Indiana.

  • Battery Life Seems Sub-Par For Some

    Every new iPhone brings <a href="http://www.huffingtonpost.com/2011/10/17/iphone-4s-problems-issues-complaints_n_1015538.html#slide=413381">complaints about battery life</a>. <a href="http://www.huffingtonpost.com/2011/10/17/iphone-4s-problems-issues-complaints_n_1015538.html#slide=413381">(Read more about about the iPhone 4S's battery weakness here.)</a> "horrible battery life, i am disgusted," <a href="https://discussions.apple.com/thread/4331259?start=0&tstart=0">mht83193 wrote on an Apple discussion thread</a>. He describes losing 40 percent of his fully-charged iPhone battery in one hour. Are people's iPhone batteries just be draining faster because of overuse, a new energy-sucking app or a glitch in iOS 6? During the key presentation on the iPhone 5, Apple claimed <a href="http://www.huffingtonpost.com/2012/09/12/iphone-5-features_n_1877637.html">the iPhone 5 got 225 hours of battery life while on standby</a>, compared to 200 for the iPhone 4S. If you're having battery life issues with the iPhone 5, we recommend <a href="http://www.imore.com/how-fix-battery-life-problems-ios-6-or-iphone-5">reading the blog iMore's troubleshooting guide</a>.

  • It 'Leaks' Light

    While white iPhone 5s are apparently not as easy to scuff as the black models, the white models have another problem of their own: A a tiny amount of light leaks out of the top right corner of the device's screen. The light leak can be see when they screen is activated in a dark room, <a href="http://forums.macrumors.com/showthread.php?t=1450376">according to complaints at MacRumors</a>. The tech blog <a href="http://www.bgr.com/2012/09/24/iphone-5-light-leak-apple-defect/">BGR confirms the "light leak" with its own phones</a>. The iPad 2 reportedly had a similar problem in 2011, <a href="http://news.cnet.com/8301-13579_3-20042462-37.html">according to CNET.</a> [<a href="http://forums.macrumors.com/showthread.php?t=1450376">photo via MacRumors</a>]

  • It Scratches Too Easily

    When you drop several hundred on a new iPhone, you want it to be pristine. That's what makes the so-called "scuff-gate" controversy such a blemish on the reputation of a company as obsessed with design as Apple. <a href="http://allthingsd.com/20120923/scuffgate-some-early-adopters-claim-iphone-5-case-is-scratch-tacular/">Bloggers at AllThingsD</a> and <a href="http://forums.macrumors.com/showthread.php?t=1445493">posters on the MacRumor forums</a> complain that the black iPhone 5 is very susceptible to dings and scratches, perhaps due to the iPhone 5's aluminum casing (which didn't exist on previous iPhones). Watch a 2-year-old girls scuff up a perfectly good iPhone 5 to the right, <a href="http://www.youtube.com/watch?feature=player_embedded&v=OSFKVq36Hgc">in a video from iFixIt</a>.

  • It's Got A Screw Loose? (Well, Not A Screw)

    <em>Rattle, rattle.</em> That's the sounds some iPhone 5 owners get when they shake their device, <a href="https://discussions.apple.com/message/19687103#19687103">according to posts on the Apple.com forums</a>. Some claim being told by Apple that it's normal noise created by camera competents, other say it's an unglued battery (the latter problem can be fixed with a trip to an Apple Store). In either case, it's annoying, as numerous YouTube videos show.

  • Its WiFi Radio Is Finicky

    Again, Internet forums have been lighting up about slow to nonexistent WiFi connectivity in their new iPhones, when compared to the iPhone 4 or 4S. <a href="http://www.macworld.co.uk/ipad-iphone/news/?newsid=3400074&pagtype=allchandate">MacRumor writes</a <a href="https://discussions.apple.com/message/19662780#19662780">(and posts on the Apple Forums confirm)</a> that the issue for some users has to do with using a certain secure WiFi connection called WPA2. Moving to less secure WiFi connections resolves the issue, according to forums.

  • The 'No SIM Card Installed' Error

    This is annoying: Imagine buying an iPhone, putting your SIM card in it and being told by your phone that there's "no SIM card installed." That's the error message reported in Apple.com forums <a href="https://discussions.apple.com/message/19721395#19721395">here</a> and <a href="https://discussions.apple.com/message/19729258#19729258">here</a>. If you're having this problem, restart your phones by holding down the Home and Sleep buttons. If that doesn't help, take it to the Apple Store and they can replace your SIM Card.