The Silicon Valley company, which specializes in programmable chips, on Monday announced what it believes is a major leap in making such components impervious to the radiation that strikes spacecraft after they leave the earth’s atmosphere. Harmful streams of high-energy particles can play havoc with semiconductors, causing damage such as interrupting the switching functions of individual transistors on chips.

Radiation is an enormous problem, says Scott Anderson, founder and owner of SEAKR Engineering, a company in Centennial, Colo. that designs specialized computers and other hardware used in satellites and other space-oriented applications. “If you don’t design for it properly, it can take down your whole system,” he says.

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“The burden for consumers caused by this glitch, combined with the confusion over its cause and how it will be fixed, has the potential to undermine the many benefits of this innovative device. To address this concern, I ask that Apple provide iPhone 4 customers with a clearly written explanation of the cause of the reception problem and make a public commitment to remedy it free-of-charge.

“The solutions offered to date by Apple for dealing with the so-called ‘death grip’ malfunction–such as holding the device differently, or buying a cover for it–seem to be insufficient. These proposed solutions would unfairly place the burden on consumers for resolving a problem they were not aware of when they purchased their phones.”

– Democratic New York Senator Charles Schumer, in a play for a little PR, ahem, facetime

Tough to say. The much-publicized reception issues surrounding the iPhone 4′s antenna design do not seem to have slowed uptake noticeably yet. But now that those issues have been verified under laboratory conditions by an independent review organization, particularly one as influential as Consumer Reports, you’d expect sales to suffer at least a bit. Right?

J.P. Morgan analyst Mark Moskowitz thinks they might, or rather he thinks there’s a risk that they might. “At this point, concerns around iPhone 4 reception do not appear to be impacting demand, but we think there are risks when a well-respected product rating agency such as Consumer Reports issues an unfavorable report,” he said in a note to clients, adding “The report should turn up the heat on Apple.”

Or spike sales of the company’s iPhone 4 Bumpers…or duct tape.

After testing three iPhone 4 handsets purchased from three New York-area retailers, the magazine concluded signal strength is degraded when the device is held in a manner in which its external antennas are bridged.

“There is a problem with its reception,” the publication explains. “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.”

That’s quite a change from the publication’s stance earlier this month, when it said that “there’s no reason, at least yet, to forgo buying an iPhone 4 over its reception concerns.”

Evidently, there is now, though Consumer Reports gave the iPhone 4 high marks in other areas, like display quality and battery life.

There is an easy solution for iPhone 4 owners suffering reception problems, the publication notes. Cover the device’s antenna gaps with a piece of duct tape. “It may not be pretty, but it works,” CR says, adding, “But Apple needs to come up with a permanent–and free–fix for the antenna problem before we can recommend the iPhone 4.”

But in the end, does that recommendation even matter? And will its absence hurt sales? At this point, the antenna issue does not appear to be impacting demand for iPhone 4.

Apple (AAPL) did not immediately respond to a request for comment.

[Image credit: Peter Morgan / Flickr]

Filed in federal court in Maryland Wednesday on behalf of a pair Maryland residents who purchased two iPhone 4s each, only to find they suffered significantly reduced reception and performance when handled the way any reasonable person would handle a cell phone, the class action accuses Apple (AAPL) and AT&T (T) of knowingly selling phones with a defective antenna design.

Evidently Apple’s “just avoid holding it that way” prescription didn’t go over too well with the plaintiffs.

“Plaintiffs were sold defective iPhone 4 units, which drops calls and data service when held in a manner consistent with normal wireless phone use,” the complaint reads (full text embedded below). “Plaintiffs have experienced numerous dropped calls, and as a result, Plaintiffs are left with a device that cannot be used for the normal purpose and in the normal manner in which such devices are intended to be used. Plaintiffs are unable to return the phone without incurring a substantial restocking fee. As a result of the defect in the iPhone 4, Plaintiffs have suffered monetary damages. Defendants’ design, manufacture, marketing, distribution, or sale of the defective iPhone 4 has directly and proximately caused all class members to suffer injury.”

The suit goes on to accuse Apple and AT&T of a host of misdeeds, including:

• General negligence
• Defect in design
• Breach of warranty
• Deceptive trade practices
• Intentional misrepresentation
• Negligent misrepresentation
• Fraud by concealment

The evidence supporting those allegations: The various accounts of iPhone reception problems and their possible causes that have been posted to the Web in the past few days, Apple CEO Steve Jobs’s “just avoid holding it that way” email, an alleged AppleCare support script instructing technicians not to offer warranty service to customers complaining about the iPhone 4′s antenna, and some investigations of the issue by armchair antenna engineers.

In other words, a bunch of stuff posted to the Web.

That seems a soft foundation upon which to build a case like this. How can the plaintiffs be certain that the iPhone 4’s antenna issue can’t be remedied with a software update? Have they spoken with antenna engineers that guarantee it is exclusively a hardware issue? Are they aware of evidence that suggests a number of other smartphones suffer similar attenuation problems when their antennas are covered?

I put those questions to Charles Gilman, one of the attorneys for the plaintiffs, and here’s what he had to say:

I am not aware of other smart phones that suffer from the same problem. Certainly previous iPhones did not suffer from this problem. We have seen sufficient information to lead us to believe that Apple knew of the problem. I do not anticipate having a problem with our case. We will obtain our most valuable information through the discovery process. No expert has opined at this point as to whether this issue can be fixed with a software patch.

Fair enough. Let’s see how this one plays out, then.

ECF 1 Complaint –

Responding to complaints about weakening signal strength when the iPhone 4 is held in a particular way, the company said such issues are common to all cell phones. Its suggested solution for those experiencing the problem: Hold it a different way–specifically, in a way in which your hand doesn’t simultaneously cover the two antennas built into the steel band that encircles the phone’s exterior. Evidently the flesh of the hand can act as a conductive agent between the two antennas causing signal degradation.

“Gripping any phone will result in some attenuation of its antenna performance with certain places being worse than others depending on the placement of the antennas,” Apple spokesperson Nat Harrison explained. “This is a fact of life for every wireless phone.”

And that is true. The Droid Incredible reportedly suffers from a similar issue. As do the HTC EVO, the Nexus One, the iPhone 3G and certain BlackBerrys (see image and videos below).

So, yes, a fact of life–particularly given FCC requirements that mandate that the radiating portion of a cell phone’s antenna be kept as far as possible from the user’s head. So why haven’t we heard complaints like this about “every wireless phone”? Why hasn’t RIM issued instructions for a proper BlackBerry handhold? That’s not clear.

Perhaps it’s the result of the iPhone launch spectacle and the media attention and scrutiny that accompanies it. But perhaps it is a design issue as well. After all, the iPhone 4′s integrated antenna is new and CEO Steve Jobs did tout it at WWDC as “really cool engineering.” And Apple’s advice to those encountering the problem is simply to hold the phone differently. Said Harrison, “If you ever experience this on your Phone 4, avoid gripping it in the lower left corner in a way that covers both sides of the black strip in the metal band, or simply use one of many available cases.”

Given that simple solution, why didn’t Apple simply adjust the position of the antennas in the first place?

That said, note that Harrison says “if you ever experience this,” suggesting that the issue is an occasional or limited one. For what it’s worth, that appears to be the case with my unit. Despite my best efforts, I can’t reproduce the problem on it.

Evidently, the German telecommunications outfit is looking to placate shareholders dismayed by the unit’s performance of late. Not only is T-Mobile trailing far behind rivals like AT&T (T), Verizon Wireless (VZ), and Sprint (S), it’s losing subscribers. In the third quarter of 2009, for example, T-Mobile lost a net 77,000 customers.

Were Deutsche Telekom to move ahead with a T-Mobile IPO, it might be able to raise enough capital to build out its network, improve reception in major markets and start winning back some of the subscribers it has been losing.

• 600 MHz Samsung ARM processor
• 256MB system RAM
• a 3.2-megapixel camera with autofocus
• 32GB of storage
• a digital compass
• FM

These specs were submitted to a rumor site by someone who claims to have a friend inside Apple manufacturing partner Foxconn who has handled iPhone “model MB717LL 9.” As such, they should be taken with a grain of salt, if not an entire salt flat.

That said, the rumors do seem reasonable. A 600 MHz chip is a nice improvement over the a 400 MHz part in the current iPhone, as is the doubling of RAM to 256MB. FM transmission and reception capabilities have been rumored before as has the compass. What’s missing, however, is an improved battery, a better GPU–perhaps the PowerVR SGX that’s been rumored to be heading for the device, a new, more elegant housing less prone to those hairline cracks that seem to plague the current one, and–in a perfect world–an OLED display and a second front-facing camera for video conferencing. Of course if OS 3.0 proves to be even a third as robust as Apple claims, we’ll be so enamored of the device we might not notice any of those things are missing.

• 600 MHz Samsung ARM processor
• 256MB system RAM
• a 3.2-megapixel camera with autofocus
• 32GB of storage
• a digital compass
• FM

These specs were submitted to a rumor site by someone who claims to have a friend inside Apple manufacturing partner Foxconn who has handled iPhone “model MB717LL 9.” As such, they should be taken with a grain of salt, if not an entire salt flat.

That said, the rumors do seem reasonable. A 600 MHz chip is a nice improvement over the a 400 MHz part in the current iPhone, as is the doubling of RAM to 256MB. FM transmission and reception capabilities have been rumored before as has the compass. What’s missing, however, is an improved battery, a better GPU–perhaps the PowerVR SGX that’s been rumored to be heading for the device, a new, more elegant housing less prone to those hairline cracks that seem to plague the current one, and–in a perfect world–an OLED display and a second front-facing camera for video conferencing. Of course if OS 3.0 proves to be even a third as robust as Apple claims, we’ll be so enamored of the device we might not notice any of those things are missing.

Also making the rounds today are reports claiming iPhone 3.0 will support on-board video editing. Seems there are some resources in the latest beta of the OS suggesting that video capture and manipulation will figure large in the next device–things like “UIMovie Scrubber Editing Right,” “UIMovieScrubberMaskLeft” and whatnot. Now, while these resources could be pointing to something else entirely, it seems plausible that they are referencing some sort of video tool (iMovie Mobile? iMovie Light? iMoviePhone?)–particularly when considered with the MobileMe “Publish Video” feature also found concealed in the 3.0 beta. That said, no mention of video editing was made during Apple’s recent iPhone 3.0 event. Perhaps Apple (AAPL) hopes to keep it under wraps until the device’s official debut. Or perhaps there’s nothing to keep under wraps in the first place.

Certainly, demand is robust. Lehman’s Ben Reitzes today writes in a research note that “checks indicate” Apple (AAPL) iPhone demand in the fiscal fourth quarter ending September could top his current estimate of 3.8 million units. And he adds that this “bodes well for cash flow,” and for “an enhanced halo effect for Macs.”

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