It is amazing how so many people just allow companies to trample all over them, and yet they not only accept it but go out of their way to defend them. Simply amazing.
Apple makes some of the neatest, highest tech, future engineered products of any company, and the Iphone 4 is at the top of this list. It is simply an amazing piece of technology, well built, extremely easy to use, and hundreds of thousands of Apps make it even better. The Iphone 4, however, is flawed.
There is no question, it is not speculation, that the Iphone 4 antenna design is flawed. It is a basic fundamental electrical engineering failure. And, there is absolutely no possibility that Apple engineers did not know this long ago.
Any EE with even slight experience knows that humans touching antennas directly will degrade their signals both in strength and in quality. This is a simple hard fact. Shorting 2 different antennas together through the human hand, is a much worse issue and something that can only be done on a Iphone 4. This is also a simple hard fact.
Now, to the question of what to do. First, there is no, nor will there ever be a software "fix" for this issue. You cannot fix a hardware flaw in software. Yet another simple hard fact. So if you are waiting on this software fix from Apple, expecting it to correct this antenna reception issue, you are going to be waiting a long time.
The only "fix" is to put something that is non-conductive between your hand, or any body part such as the face, and the antennas on the Iphone 4. Although this will not completely fix this issue, it will make the Iphone 4 more like every other phone regarding how much degradation occurs when your hand gets close to the antenna. Apple is correct when they say that all phones will have signal loss when held in a certain way, i.e. by placing your hand close to the antenna.
It is likely, due to the Iphone 4's antenna design otherwise, you will get a better signal with it as compared to the previous Iphones. But, you must use some kind of case, and one that is not metal.
With an appropriate case, the Iphone 4 is a remarkable phone and in my opinion, when looking only at it's functionallity and ease of use, a great phone to have. In fact, it is one of the best phones on the market today.
However, if one looks at how Apple has handled this issue, and also considers ethics and what is right and what is wrong, something to few people do today, the answer may be different. Lets look at some hard facts.
1) When held in the normal way the Iphone 4 will have it's antennas touching the human hand and also possibly the face, and this WILL interfere with both the signal strength and quality.
2) A non-metallic case will greatly alleviate this issue, and maybe even improve the signal beyond that of the previous Iphones.
3) At launch time there was one and only one "case" available for the Iphone 4. This case is made (or at least sold) by Apple, and costs $30.00. It ONLY covers the antennas on the phone, thus providing a "fix" (likely one of the best fixes you are going to get) for this reception issue.
4) Apple has claimed there is no hardware issue with the Iphone 4, something that has and can be shown to be false.
5) Apple has said they will provide a software fix claiming they have had the bars calibration wrong since the very first Iphone. The bar calibration has absolutely nothing to do with the real signal strength or quality, that is, changing the bars is not going to improve the real signal strength, prevent dropped calls, or prevent data downloads from stopping or running very slow.
Conclusion: Apple knew there is an issue with the antennas being on the outside of the Iphone 4 a very long time ago. They designed the phone this way in order to make it thinner, and to allow Jobs to claim it to be the thinnest smart phone in the world. Their plan was to make this rubber to go around the antennas, they call a bumper, and decided that not only will customers pay for this fix, but why not make some money in the process. So, this bumper was extremely marked up (it contains about $5.00 worth of rubber), pushed hard to every one who bought a Iphone 4 (remember there was no other way to protect this expensive phone), and made money in the process.
The bumper did two (2) things for Apple - 1) removed many, many, many complaints of dropped calls and data transfers stopping because so many people bought, and immediately installed, these bumpers, and 2) made tens or more likely hundreds of millions of dollars on this bumper alone.
Apple knew there would still be complaints and that this would become an issue. So, they came up with this claim of utter surprise that the bars have been wrong since the first Iphone. They admit to a huge mistake, but one in software which can be "fixed", not in hardware which cannot. They then modify these bars to fix them, after they have already fixed them in one of the 3.x OS updates, and the fix is going to show fewer bars for everybody, even if you are in the best 3G location AT&T has. The complaint now will be - I cannot get full bars no matter where I am. I am in a very strong 3G area, and only get 3 bars. Apples response, the bars although not perfect, are now showing you a much more accurate indication of your real signal strength. If you feel you should have a stronger signal, you should talk to AT&T's customer service.
Finally, should you keep the Iphone 4 because it is great (once you install a case), despite the obvious deceit on the part of Apple, or should ethics, should morals, should right mean something and you return the Iphone 4 on simply principal alone? One should always - follow the money to get to the truth, then act on that truth based on their own personal morals. The answer is for you to make.
Note: I should point out that in addition to the antenna issue it is certainly possible that there is also a software issue, and/or a software update that can improve the signal issue. Part of Apple's software update may do just that. However, this does not take away from or change the fact that the antenna design on the Iphone 4 is flawed, a hardware design error.
Omegaman