The iPhone 4 reception issue is quickly blossoming into a hardware issue that is on the same scale as the Xbox 360 red ring of death. After finally publicly admitting that there is a known issue that results in signal degradation, which supposedly can be fixed by a software update, Apple has reversed track and said that it cannot be fixed by the Apple software update.
After contacting AppleCare three separate times, Gizmodo was able to confirm, via Apple Care support, that the update will not fix the issue. Apple said “the incoming software update will not fix this antenna problem, only change the way the phone displays the available signal, make it more accurate”.
Although everyone seemed to already know that this was the issue, this is the first time we have heard Apple directly say that the software update will not fix the root of the problem. In essence, they are admitting that they have a design flaw.
How Apple will finally amend the issue is still unknown. They could provide all users a free bumper case or allow for extended return time, but you can be sure that Apple is probably working up something that will hopefully appease most users. Let’s not forget either; Apple has a substantial pile of cash in its bank accounts so this issue will not topple the Apple empire but it does represent a rare failure for the corporation.