Gizmodo has posted a video going over what appears to be an issue with the signal strength of iPhone 4. When being held in the hand, several users claim that their signal strength declines significantly.

There have been claims from several users that this is also occurring on their iPhone 4. However, there are also users that claim this is just a software issue that is displaying the signal strength incorrectly, rather than an actual issue with the phone. But, users are still reporting that they have dropped calls when the signal does decline when the device is being held in the hand. On the other hand, many users are claiming that their iPhone 4 has no signal issue when holding it. It appears as though the issue is not widespread, but is going around. Let's hope that this issue is fixable with a software update, and not hardware related.

iPhone 4 uses a brand-new, revolutionary antenna system where the antenna's for network communications are embedded into the stainless steel rim of the device.

UPDATE: It appears, according to a new video, the issue has been isolated to the bottom left-hand corner of the device. It appears as though the signal drops most when iPhone 4 is held in the left hand and being grasped on the bottom left-hand corner. A few users have been able to confirm this, while others still say they have no issues.

UPDATE 2: Users are now reporting that when using one of Apple's bumper cases, this issue does not occur. Also, Apple has reportedly stated that this is indeed a software issue with the phone reporting a poor signal, but the signal itself does not worsen. The issue will apparently be fixed in a software update.