Apple says users with iPhone reception problems are using it wrong
Since the introduction of their new iPhone 4, Apple has been getting complaints of reception problems related to users bridging a gap in the steel band around the phone's edge during normal use. Despite acknowledging that the issue exists, Apple has consistently defended their design and characterized the problem as a user issue.
The problem occurs when the device is cupped in the user's left hand in such a way that a gap in the steel band around the edge is bridged. Among other things, the band serves as a pair of antennas which are separated by this gap.
Holding the iPhone 4 in this way has been found to degrade or completely block phone and data service.