It may just be launch day media hype for the massive iPhone 4 release today, however some reports are starting to trickle in on what could be a significant issue with the phone's reception.
Owners are reporting that by holding the iPhone normally in the hand, the bars that indicate reception strength begin to quickly drop until the phone loses all reception. Conflicting information on whether the iPhone actually loses all reception or the indicator that shows reception is buggy. Some owners report that when they try to place calls after the signal drop, they were unable to do so. Others report that they could still make calls, and still other owners report no such problems exists with their iPhone 4 at all.
This may simply be a software error of there could be a bad batch of iPhones in the wild, only time will tell at this point. Apple recently experienced some issues at the launch of the new iPad where users complained about very weak WiFi signal strength. Apple has promised a firmware patch soon that will cure the error, although reports of the problem seem to have subsided in recent weeks.
For more information and video clips of the iPhone 4 issue are posted on BGR.