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There has been lots of talk on the reception issue of the newly released iPhone 4. Early iPhone 4 customers are not too happy with their purchase as the device is said to be dropping signals when you hold it in your hand. While there is still no official word or acknowledgement from Apple on the issue yet, it was earlier being suggested that this was an hardware issue and Apple might have to recall all these devices for a replacement.

iOS 4 Reception Issue

But now according to this new video posted on YouTube, it now looks looks like there is a bug in the current build of iOS 4 which causes this issue on iPhone 3GS and iPhone 3G too, running iOS 4.

Since this never happened on any iOS 3.x.x (formerly iPhone OS 3.x.x) device, this suggests a bug in the software rather than hardware. Apple must be investigating the issue right now. If it is confirmed as a bug in OS, they will definitely release a minor iOS 4.0.1 or iOS 4.1 update to fix this issue for iPhone 4 users.

Let us know your thoughts on this in the comments section below. [via BGR]

UPDATE 1: Video proof with iPhone 3GS:

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