Apple shares have dipped by 4% after a bad review of the iPhone 4 by consumer guide Consumer Reports.
The news comes as speculation mounts that the manufacturer may recall its newest device – which sold 1.7 million worldwide in its first three days – after widespread antennae issues.
Consumer Reports said it could not recommend the iPhone 4 after its tests confirmed signal was lost when the device is held in a certain way. It did not report any problems with the 3GS model.
That report spurred widespread discussion about the possibility of an iPhone 4 recall, which would be a first for the US manufacturer.
Apple has not responded to the report or the allegations.
Last week Apple admitted that the iPhone 4 had problems with reception, but claimed the problem is to do with how reception is displayed rather than the antennae or the handset itself.
In an official statement Apple had said: ‘Upon investigation, we were stunned to find that the formula we use to calculate how many bars of signal strength to display is totally wrong.
‘Our formula, in many instances, mistakenly displays two more bars than it should for a given signal strength. For example, we sometimes display four bars when we should be displaying as few as two bars.
‘Users observing a drop of several bars when they grip their iPhone in a certain way are most likely in an area with very weak signal strength, but they don’t know it because we are erroneously displaying four or five bars. Their big drop in bars is because their high bars were never real in the first place.’
The manufacturer said it would issue a free software update within a few weeks that will correct the way reception is displayed on the handset.