iPhone4: No CR Recommendation

Published July 13, 2010 at 8:53 a.m.

SEATTLE (AP) Consumer Reports said Monday it will not recommend Apple Inc.'s newest iPhone because of reception problems caused by its antenna design.

After the iPhone 4 went on sale in June, buyers started complaining that holding the gadget a certain way could cause reception to fade and calls to drop.

Apple has said that any phone will lose signal strength when gripped in certain ways. It said the iPhone 4 seems to show a larger drop because it has been using a faulty formula to decide how many signal bars to show.

But Consumer Reports said it tested several phones that use AT&T Inc.'s network, and only the iPhone 4 seemed to have the reception issue.

``Our findings call into question the recent claim by Apple that the iPhone 4's signal-strength issues were largely an optical illusion caused by faulty software,'' Mike Gikas of Consumer Reports wrote in a blog post Monday. ``The tests also indicate that AT&T's network might not be the primary suspect in the iPhone 4's much-reported signal woes.''

Apple did not respond to messages seeking comment.

The iPhone 4 topped Consumer Reports' updated ratings list for smart phones, thanks to its sharp display and ``best video camera we've seen on any phone,'' according to the blog. But the magazine, which tests electronics, appliances and other items, will not mark the iPhone 4 recommended until Apple finds a permanent and free fix for the problem.

Investors sent Apple's shares down $2.33, or about 0.9 percent, to close at $257.29. In extended trading, the stock regained 80 cents to $258.08.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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