To those saying that calls wouldn't drop if it was a software issue that isn't necessarily true. Let me bring out a car analogy 
My friends car started shutting off the other day. Basically you would drive it and it shutdown like the gas had been turned off. Turns out there is a senor that watches the driveshaft to check RPMs. When this sensor fails and registers zero RPMs the cars computer turns off the fuel pump and stops the flow of gas even though technically the engine is fine to run. In this case there is a faulty sensor, but a computer 'fix' could simply ignore the sensor.
In the iPhones case there could be firmware/software that is misreading signal strength (they have the newly touted ability to switch freqs based on need) and when the signal drops to zero the software cancels the call. The hardware could be completely fine with a bug in the software ruining the show.
The greatest evidence against a software issue to me though is that some phones do not exhibit the problem. If if were a software issue, I would expect all phones to exhibit the same problem when tested in the same location (as apparently Engadget has done).
My friends car started shutting off the other day. Basically you would drive it and it shutdown like the gas had been turned off. Turns out there is a senor that watches the driveshaft to check RPMs. When this sensor fails and registers zero RPMs the cars computer turns off the fuel pump and stops the flow of gas even though technically the engine is fine to run. In this case there is a faulty sensor, but a computer 'fix' could simply ignore the sensor.
In the iPhones case there could be firmware/software that is misreading signal strength (they have the newly touted ability to switch freqs based on need) and when the signal drops to zero the software cancels the call. The hardware could be completely fine with a bug in the software ruining the show.
The greatest evidence against a software issue to me though is that some phones do not exhibit the problem. If if were a software issue, I would expect all phones to exhibit the same problem when tested in the same location (as apparently Engadget has done).