It appears that one part of the steel band is the Wifi antenna, the other is the cell antenna. When some people touch both the software driving the Wifi channel selection somehow impacts the Cellular connection. As I am not a software engineer I am merely repeating what I read. So a software update is supposedly in the works to fix it pretty quick. I think the numbers of 28% are deceiving. Most people use a case for their phones, so most people will not have this issue.

http://www.appleinsider.com/articles..._ios_4_01.html

Another link reports that the problem appears to be regional, suggesting a network problem, not a phone problem.

http://www.macrumors.com/2010/06/26/...oss-by-region/

sad how google didn't notice the problem with the nexus one.

http://www.google.com/support/forum/...9184c33e&hl=en

Major signal degradation when Nexus One is picked up

When my phone is sitting on the desk, the signal stays.consistent. However, the second I touch my phone, the signal drops up to as much as -20 dBm. I am able to replicate this test every single time, whether the signal is incredibly strong or weak.

some users are also reporting that they also have the problem after installing 4.0 on an older iphone, which suggests that it has less to do with the antenna design and how the phone is held than it does the firmware itself and how it interacts with the cellphone network, not to mention that other phones come with instructions on how to properly hold the phone too.

supposedly 4.0.1 will be out soon, possibly even next week.

@:-) Maybe the eyePhone 4.x users can use the magic tape to affix their phones to their foreheads; this will not only provide the very best reception, it will instantly signal to other Cupertinizens that they are fellow travelers in the Order of Steve.......

That isn't the exchange rate anymore (thankfully), and I think that any rubber case can help. That said, what a ridiculous issue that should have been worked out in development.

Being a MacOlyte means you are part of their Beta Development Team.

Just another tired old attack on all things Apple. I am sure there have been no problems with any other phone company or phone sold.

two words: windows vista.

None sold in these kind of volumes.

What does the Nexus One have to do with this thread? The title is about the iPhone. No need to go on the defensive.

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I think that would properly be termed as "going on the offensive". ;)

nothing defensive about it. holding any phone in way that blocks or interferes with its antenna can cause signal degradation. apple is not exempt from the laws of physics. even my flip phone has instructions on how to hold it properly, and if i don't, the signal strength drops.

I've had my phone since late Thursday. I only was able to recreate the reception issue when I was inside in a weak coverage area. The area I was at in Portland has always had 1-2 ATT bars, even with a 3G iphone, so no surprise when I covered the antenna.

In Seattle, Tucson and Phoenix, it's been fine. Signal is just fine in most areas, and areas where my 3G iphone would lose signal, this phone doesn't seem to lose it as much.

I do have a body glove case on it, if for no other reason than to protect it if I drop it. My biggest complaint with the phone: everyone saying "oh wow, is that the new iphone?!?" :D

I don't believe the new iphone issue is the same as the signal simply being blocked. I have a nexus one and will notice a drop in wifi signal strength if I hold it in landscape mode with my left hand over the top of the phone. That tells me the antenna is in the top and the signal is reduced traveling through my hand. It would be rather impossible to hold it the same for a call as your hand is over the speaker.

I iphone problem seems to be because the antennas are external and by touching both with your hand, you complete an electrical path between the two which disrupts reception. Seems like it would have been a simple fix to coat the antennas with something non metallic, treat the metal to make the surface non-conductive, or move them inside the case.

But then it wouldn't look as cool... ;)

I have to say, I TOTALLY have this problem. It really does drop off, (either it THINKS there is a worse signal or it CREATES a worse signal) regardless, it takes it all the way to DROPPING THE CALL. Totally unacceptable from a phone perspective.

The only things worse, is the apple CS response. I have had this issue since Thursday when I picked up the new phone. After about five dropped calls I called CS. no help. After the next few days, more dropped calls, I called back about a fix, or a band-aid. Many were getting free bumpers to aleviate the problems (I actually TRIED to buy on locally but they were ALL SOLD OUT due to this problem most likely) but all the CS reps offered me was to direct me to apple.com where I could BUY a 30$ bumper to FIX A 500$ phone and wait 7-10 days to get it even then.

Not a good response to a clear issue.