http://www.computerandvideogames.com/article.php?id=253299

Want to download a game on your iPhone 4G tonight? Make sure your hands aren't clasping it too tightly. Evidence is emerging that the device may lose signal when held in users' hands.

TechRadar's reported,on the apparent defect but it's one that has got people talking and either panicking or gloating depending on whether or not they've just queued seven days to get the 4. 

Here's the video demonstrating the problem from TechRadar, you'll see the iPhone loses signal completely thanks to the hand that engulfs it.

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Dear god, I don't hope that's a universal problem or Apple will have failed very, very hard.

I know there were worries that the design with the antenna might cause problems, but I at least thought Apple would have found out about it.

Apple...another fail.

Well that's un4tunate. heehee, pun...

There's a lot of confusion about this problem. It seems to come about when conductive human skin bridges the gap between the two antennas in the lower-left corner of the phone.

I've seen it suggested that it's actually a software problem. Supposedly the reception is actually fine, but bridging that gap confuses the phone into thinking the signal is weaker, sometimes to the point where it thinks it has no signal and drops a call. If that's true, we can expect a patch addressing the issue before too long.

The iPhone 4 apparently uses new software that switches cell towers based on congestion, rather than signal strength, in an attempt to mitigate AT&T's notoriously bad service in some areas. Perhaps bridging the antennas creates some weird interaction in this software that results in needlessly switching towers.

Some iPhone 4s don't seem to exhibit the problem at all, which it seems to me would point towards a hardware defect.

Whatever the exact nature of the problem, the quickest do-it-yourself fix is to get a case so that your hand won't bridge that gap.

After much research, it turns out that this is a very common issue on pretty much any modern phone if you hold it right.  I managed to replicate the problem on my 3GS, even through a hard case, and here are videos showing similar issues with a Nexus One and iPhone 3G:

If you want to see the explanation for why holding phones the wrong way can degrade their reception, check this out:

http://www.antennasys.com/antennasys-blog/2010/6/24/apple-iphone-4-antennas.html

Man, that sucks, I'm glad I'm not up for an upgrade for another four months.  Hopefully they'll have that fixed by then because apparently I hold the iPhone incorrectly.

I'll have to test this out on someone's iPhone 4 tomorrow.

I have a 3G and I can't reproduce the above video.

So this isn't a big deal.

1.  It only happens if you don't have a case.
2.  It's not even 100%, I couldn't even get it to happen with my friends iPhone 4 and it has only happened to him rarely.
3. If you're real worried and you don't want to use a cover, just stick a small piece of tape on the magic spot.

more overhype,on an apple product.

thats a pretty serious flaw...

Apple says it isn't a design flaw... People are just holding the phone "wrong" lol gotta love the PR spin