IPhone 4G Maniac

Source from The Wall Street Journal:

Consumer Reports said its tests show a hardware defect causes the iPhone 4 to lose reception when held a certain way, challenging Apple Inc.'s claims that the problem is rooted in software that can be easily fixed.

The product-quality watchdog said Monday it can't recommend the newest iPhone despite otherwise high marks, dinging a company that for many shoppers can do no wrong. It was the first time Consumer Reports has failed to give the thumbs up for an Apple phone.

Consumer Reports says it can not recommend the iPhone 4 based on its lab tests of the device in which the magazine found a reception problem with the smartphone. Niraj Sheeth & Eric Savitz discuss. Plus, 4G Phone Shortages and Google's App Inventor.

Apple redesigned the iPhone for this release, putting the antenna on the outside in a metal band running around the frame. But the unusual design puts the antenna in closer contact with hands and fingers, which antenna experts said makes it susceptible to signal problems.

Consumer Reports said it had tested other smartphones in its labs, including the previous iPhone 3GS model as well as the Palm Pre, and found none showed the same loss of signal as the iPhone 4.

"Our findings call into question the recent claim by Apple that the iPhone 4's signal-strength issues were largely an optical illusion caused by faulty software," Consumer Reports wrote in a blog post.

Apple didn't respond to requests for comment.

When early iPhone 4 buyers complained of signal issues, the company said reception will suffer when almost any cellphone is gripped in certain ways.

In an open letter to customers July 2, Apple said after an investigation into the reception issue, it had discovered a software problem that inflated readings of signal strength and promised to deliver a software fix.

"We have gone back to our labs and retested everything, and the results are the same— the iPhone 4's wireless performance is the best we have ever shipped," Apple said at the time.

Consumer Reports took some of the heat away from AT&T Inc.'s network, which has been criticized for dropped calls and not being able to adequately handle the load of data-guzzling iPhones.

"The tests also indicate that AT&T's network might not be the primary suspect in the iPhone 4's much-reported signal woes," the publication said.

AT&T declined to comment.

Negative reviews from Consumer Reports have forced companies to alter their products, but analysts said the signal problem hasn't thus far slowed demand for the iPhone 4.

The device has been in short supply since it went on sale June 24.