As previously reported by many new iPhone owners, the signal strength of the iPhone seems to be dependent on the placement of users’ hands. Now however as more users who don’t even own the iPhone 4 are reporting similar problems when having upgraded to iOS 4, people are starting to speculate that there is also a software issue involved in the matter.
According to sources the updated firmware iOS 4.0.1 is expected to address a issue in iOS 4 related to radio frequency calibration of the baseband. As you might remember iOS 4 introduced some enhancements to how the baseband selects which frequencies to use, so it makes sense that the error may have crept into those changes. This is also an indication that this is a software issue and not hardware related.
The firmware is expected to be released during the next week, with speculations that it could be as early as Monday. We will of course keep you updated as we receive more information.