The iPhone 4 was released today and it was soon evident there was a problem with the signal dropping when people were holding the phone. Many videos showing the evidence have been posted up on various forums and video sites proclaiming a mass manufacturing error. @ghalfacree has duly noted to me that this is likely to be an OS4 related issue and a fault in the displaying of bars rather than a fault with the phone, like Apple claim.

So I thought I would test my iPhone 3GS model loaded with OS4 and voila I could replicate the problem. Within 20 seconds of holding the phone, my signal went from 5 bars down to one. I did this process 3 more times to rule out a fluke and the same happened. Some people have shown videos to show calls dropping on the iPhone 4 but as Gareth states, if the phone thinks it has a low signal it will drop the call. Now I am no scientist or a technical buff, I leave that to the experts, I can only tell you that this happens on the 3GS too on OS4 so it is highly likely to be a software issue. I await a patch from Apple to fix it.