Apple has issued a statement in an attempt to explain the reported reception problems with the new iPhone 4. The company acknowledged that “some” customers reported that signal strength on the iPhone 4 can drop by 4 or 5 bars when tightly held in a way which covers the black strip in the lower left corner of the phone’s metal band. This is a far bigger drop than normal, the company said, noting most phones lose only 1 bar when held in certain ways. However, contrary to suggestions that the drop in signal strength is the result of an antenna flaw in the phone, Apple said the problem is how the signal strength is measured. The company said it was “stunned” to find that the formula it uses to calculate how many bars of signal strength to display is “totally wrong”. The Apple formula, in many instances, mistakenly displays 2 more bars than it should for a given signal strength. This means that users users who see 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 the phone is erroneously displaying 4 or 5 bars. The company will issue a free software update in the next few weeks that corrects the formula for displaying the signal strength. The update will also apply for previous versions of the iPhone, which had the same fault.