On the new iPhone to make it thinner apple had to save space, they decided to put the antennas round the outside of the phone and use them as the sides rather than keeping them inside like on the previous iPhones. So the edges of the phone look like this. Please Register or Log in to view images When you touch the side of the iPhone some of the antennas energy is lost as heat (because your hands are hotter than the phone), which makes the antenna less efficient. A recent study by Aalborg University suggested that by holding the antenna in your hand could reduce the signal by more than 90%. (source: http://bit.ly/cTZzZt) What have Apple said? There's nothing wrong with the phone, its just the bars are been displayed wrong. Does this cause interference with calls? Yes. http://www.youtube.com/watch?v=03PQyWp0mWE Does this cause interference with data? Yes. http://www.youtube.com/watch?v=kYmVpoccPnc Can this be fixed by a software update from Apple? Apple seems to think it can, although I'm not sure how if its a hardware problem. So what does everyone think Apples going to do about it?