According the Steve Jobs, the 'Death Grip' reception problem exhibited on the new iPhone 4.0 phone is due to software fault. Apple says it's been using a bad formula to display the reception bars. All along, the phone has been lying about its signal strength. When it showed four bars, it probably only should have had three or even two.
In response to the reception issues, Apple has announced that it is waiving the restocking fee. Purchasers wishing to return the product—within 30 days of purchase—will be granted a full refund for the device
Apple iPhone 4 Reception Bars: A Distorted Reality [via]
Apple Dumps iPhone 4 Restocking Fee [via]
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