Shares in Apple have fallen after an influential consumer guide slammed the new iPhone, amid rumours swirling on the internet that the product will need to be recalled.
Consumer testers confirm a problem with new iPhone's reception
The American magazine Consumer Reports said it could not recommend the iPhone 4 after its tests confirmed concerns about signal loss.
"Consumer Reports' engineers have just completed testing the iPhone 4 and have confirmed that there is a problem with its reception," it states.
"When your finger or hand touches a spot on the phone's lower left side - an easy thing, especially for lefties - the signal can significantly degrade enough to cause you to lose your connection altogether if you're in an area with a weak signal.
"Due to this problem, we can't recommend the iPhone 4."
Apple claims all cellphones suffer some signal loss when cradled in different ways and suggest that a software glitch might have misled users by overstating signal strength.
The company did not respond to the review, as its shares slid as much as 4.2% to $246.43 before rising to $250.
Analysts say Apple now needs to take quick action to avert any lasting damage to its reputation.
JP Morgan said: "Consumer Reports is a well-respected product reviewer, and the report should turn up the heat on Apple."
On the web, some experts are suggesting a recall is "inevitable".
Others are likening the problem to a Toyota-style public relations crisis and demanding Apple responds with a more meaningful fix than a software patch.
Apple says the phone's debut last month was its most successful product launch, with worldwide sales of 1.7m units in its first three days.
Consumer testers confirm a problem with new iPhone's reception
The American magazine Consumer Reports said it could not recommend the iPhone 4 after its tests confirmed concerns about signal loss.
"Consumer Reports' engineers have just completed testing the iPhone 4 and have confirmed that there is a problem with its reception," it states.
"When your finger or hand touches a spot on the phone's lower left side - an easy thing, especially for lefties - the signal can significantly degrade enough to cause you to lose your connection altogether if you're in an area with a weak signal.
"Due to this problem, we can't recommend the iPhone 4."
Apple claims all cellphones suffer some signal loss when cradled in different ways and suggest that a software glitch might have misled users by overstating signal strength.
The company did not respond to the review, as its shares slid as much as 4.2% to $246.43 before rising to $250.
Analysts say Apple now needs to take quick action to avert any lasting damage to its reputation.
JP Morgan said: "Consumer Reports is a well-respected product reviewer, and the report should turn up the heat on Apple."
On the web, some experts are suggesting a recall is "inevitable".
Others are likening the problem to a Toyota-style public relations crisis and demanding Apple responds with a more meaningful fix than a software patch.
Apple says the phone's debut last month was its most successful product launch, with worldwide sales of 1.7m units in its first three days.