Let me just say that I like my iPhones bareback. I don’t want to have to use a rubber bumper case on my phone just so I can make a call with my sweaty palms. Apparently the problem is in the metal case which doubles as an antenna. Even more interesting is the fact that this problem was predicted according to TUAW.

Think this is a one off video? Think again…  So far Gizmodo has 15 videos demonstrating the issue. Lovely! Some are claiming it’s a result of faulty meter readings being shown and that the display is not accurate. Time will tell I guess.

Anyone beginning to second guess their wanton lust for the iPhone 4.0? Perhaps iOS 4.1 will be out sooner than we think…

UPDATE: I was able to get my hands on an iPhone 4 today and I’m able to replicate the effect shown in the video. I can tell you if you insulate (using a case) or don’t touch the sides the full service is once again replicated.

UPDATE part II: Steve Jobs himself has eloquently replied to an email mentioning the problem by saying..

“Just avoid holding it in that way.”

A company spokesperson said the same, just a little bit more eloquently.

Gripping any mobile phone will result in some attenuation of its antenna performance, with certain places being worse than others depending on the placement of the antennas. This is a fact of life for every wireless phone. If you ever experience this on your iPhone 4, avoid gripping it in the lower left corner in a way that covers both sides of the black strip in the metal band, or simply use one of many available cases.

Well as shown in my video, given my beefy meat hook style hands that means I’ll have to hold the phone like it’s a damn teacup and or buy a case. I bought a case. A case which probably should have been included with a phone that has such a well documented problem.

Can anyone say VOUCHER! It’s disappointing to see one of my favorite companies fail so hard.

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