I will be basing this narrative off 9 articles published on Engadget and Boy Genius Report, and I will post all the links at the bottom of the post.
The new iPhone if you haven't seen it looks like this:
There is a metal rim wrapping around the entire phone. You may notice some seems in the rim, these are intentional as the rim is also a series of antennae. Each segment is for different components, one segment is for WiFi, another for Bluetooth, and another for 3G reception, etc. If think an external antenna seems like a bad idea, you're not alone. Two weeks before the iPhone 4 was released a Danish professor who said this: "The human tissue will in any event have an inhibitory effect on the antenna. Touch means that a larger portion of antenna energy becomes heat and lost."
Even if an antenna is internal, covering the area housing the antenna with your hand can hamper the signal, but making the antenna external makes this worse, because your hand can bridge the gap between the seems in the rim and effectively kill all signal because your hand is connecting two different antennae together. Very quickly people realized that you would kill 3G reception by touching the bottom left corner of the phone, which is very common for right-handed people who hold the phone in their left hand so that they can use their right index finger for touch operations. Someone who bought an iphone 4 got angry and email Steve Jobs about the problem, expressing his dissappointment. Steve Jobs (or whatever PR rep handles his inbox) responded saying: "Just avoid holding it in that way."
But apparently apple knew this answer didn't cut it, so they put out a listing to hire antenna engineers the very day this problem was reported. But yet they have told they're reps to try and calm expectations, instead of admitting the problem, and they won't even give customers free bumper (cases). Bumpers can fix the problem because they prevent your hand from touching the rim of the phone.
Courtesy of Engadget here is some comic relief (gray background added to show what content is the article):
Hey Apple, you're holding it wrong
But the problem didn't go away, so apple has had a change of heart, sort of, and waved the 10% restocking fee on returned iPhones. But the antenna problems don't stop there, as many iPhone 4 owners are also reporting that they're phones are getting slower connection speeds than previous generation iPhones, and sometimes even defaulting to EDGE (AT&T's slower 2G network) while previous gen iPhones at the same location are still getting 3G. You ask how slow is this connection, well it has been reported as slow as 5Kbps, to put that into perspective, internet connection is typically quoted in Mbps (1Mbps = 1000Kbps).
But back to Steve Jobs inbox, here is a conversation obtained by Boy Genius Report which they affirm as being completely real:
Apple PR quickly denounced the emails as fake, but Boy Genius Report still holds to there authenticity, and I am very inclined to believe them. But instead of speaking for them, just go read this. Not later, but now, consider this part of the post, but just too long to quote.
And now we are left with a PR standoff and a bunch of angry AT&T customers. But now the question I'm sure you all have: How could apple let this happen? And here is my highly educated opinion: I Don't Know!
When (hopefully) the situation is resolved I will do a follow up post. But for now, I hope this was informative, and again, I think this is a good story, and I am very eager to find out some answers.
Here are all the articles used for this post:
http://www.boygeniusreport.com/2010/07/03/the-entire-steve-jobs-email-story-its-real/
http://www.boygeniusreport.com/2010/07/01/exclusive-conversation-with-steve-jobs-on-the-iphone-4-antenna-problems/
http://www.boygeniusreport.com/2010/07/02/apple-iphone-4-plagued-by-3g-data-connectivity-issues/
http://www.boygeniusreport.com/2010/07/02/apple-nixes-10-restocking-fee-on-iphone-4-returns/
http://www.engadget.com/2010/06/25/hey-apple-youre-holding-it-wrong/
http://www.engadget.com/2010/06/29/apple-telling-reps-to-smooth-over-iphone-4-reception-complaints/
http://www.engadget.com/2010/06/24/apple-responds-over-iphone-4-reception-issues-youre-holding-th/
http://www.engadget.com/2010/06/30/apple-hiring-iphone-antenna-engineers-for-some-reason/
http://www.engadget.com/2010/06/26/iphone-4-antenna-problems-were-predicted-on-june-10-by-danish-pr/
http://images.apple.com/iphone/gallery/images/gallery01-20100607.jpg