I'm not sure that anyone is surprised with this news, but after releasing an iOS update to developers yesterday, many reports say that the software update is not a complete solution to the iPhone 4's reception problems. Apple previously announced the issue was software related, and ensured customers that a fix was coming with the iOS 4.1 update. However, after installing the update, which includes an adjustment to the equation used to calculate signal strength, many developers noticed an immediate reduction in the number of bars indicating signal strength, but holding the phone "wrong" still causes reception problems.

Since the phone's release on June 24, reports of poor reception and dropped calls have plagued Apple nonstop, and even earned the iPhone a top 10 list on the Late Show with David Letterman. While many of you reported having no trouble with the iPhone, some of you have noticed problems, and plan to return the phone for a refund. Now that there's word that this software update may not be a fix at all, I'm curious how many more device returns there will be. Hopefully, this will all be addressed and settled after tomorrow's press conference at Apple HQ.