Picture this: you hold the iPhone 4 in your hands and the signal drops. You leave it on the desk and it goes up again. You touch it with your skin and boom, no signal. There's this video that's running around in the internet, which shows an iPhone 4 "magically" going to to No Signal with just a few inches of skin.
TUAW is also reporting:
"In fact, this reception conniption was predicted on Fox's Gadgets and Games two weeks ago: "Having been in the cellular business most of my career, I think it's really odd that you'd want an antenna grounded by a moist hand." Check out the video; it's about 24 minutes in when MAKE magazine's Dave Mathews calls it."
Check it out after the break. If true, it's pretty bad.
UPDATE: MacRumors reports that this issue was already there on the iPhone 3G in 2008. Also, many other users claim that they are not experiencing the signal drop problem.