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The Apple iPhone 4 has been the most successful launch in Apple’s history. But, many users are facing signal reception issues on the new iPhone. Previously, Apple’s new antenna design was in the frame for having to cause the signal problems. But, Apple defended the new-design, in a Press release, saying that it’s “the best they’ve ever shipped”.

Apple says the problem goes back to the earliest iPhone. In many cases, phones displayed two more bars than they should have.
All the smartphones, like RIM, Droid, Nokia drop 1 or more bars when they are held. But, iPhone 4 users reported that it was losing 4-5 bars when it was held tightly.
But, Apple customers are getting courts involved in this matter. A number of iPhone users have filed suits against Apple for “misrepresenting information for marketing, advertising, sale, etc”.
Previously, Apple claimed that some cover, like Bumpers would solve the reception issue. But, in Press release given out by Apple on Friday, Apple claimed that a software update would solve the problem. The problem was with Apple’s formula of calculating signal strength. Apple will now be using AT&T’s formula for calculating signal reception.
Also, PCWorld has posted that even if the signal bars drop, the call quality remains solid.
The new software update will be available in a few weeks. The update will also be available for iPhone 3G & 3GS.
Also, if anyone is not satisfied with the new iPhone, he can return it to Apple within 30 days for a full refund.
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