Consumer Reports' engineers have just completed testing the iPhone 4, and have confirmed that there is a problem with its reception.

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.

After initially saying that the iPhone 4's reception issues were no big deal, Consumer Reports has changed its tune, recognizing that the software fix won't help things, and retracting their recommendation.

We reached this conclusion after testing all three of our iPhone 4s (purchased at three separate retailers in the New York area) in the controlled environment of CU's radio frequency (RF) isolation chamber. In this room, which is impervious to outside radio signals, our test engineers connected the phones to our base-station emulator, a device that simulates carrier cell towers. We also tested several other AT&T phones the same way, including the iPhone 3G S and the Palm Pre. None of those phones had the signal-loss problems of the iPhone 4.

This, of course, begs the question of why the hell they recommended the phone without actually testing it. Isn't Consumer Reports known for doing serious, unbiased testing before releasing their definitive opinions? So why did they rush to recommend the phone, even going so far as to say that the issues people were having were overblown, when they hadn't even really tested it?

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