Trouble Ahead for Apple's iPhone 4?

Apple fans may be snapping up the latest iPhone in record numbers, but that doesn't mean they're all satisfied customers once they bring their new toys home.

In the first three days of its international launch last week, the iPhone 4 found its way into more than 1.7 million hands around the world. The device, touted by CEO Steve Jobs as the "biggest leap" yet from the original iPhone, has had the most successful launch in Apple's history, the company said.

But the otherwise impressive launch has been marred by complaints from customers that holding the phone in a certain way blocks the external antenna, leading to dropped calls and reception issues.

While the old phone had an internal antenna, the new model has an external one. According to tech bloggers and iPhone users, call reception apparently drops when the user's palm covers the bottom left corner of the phone.

Earlier this week, ostensibly responding to the rising chorus of complaints, a California law firm issued a call for customers experiencing the much buzzed about antenna issue.

Is Law Firm Considering Class Action Suit Over iPhone 4?

"If you recently purchased the new iPhone and have experienced poor reception quality, dropped calls and weak signals, we would like to hear from you," the Sacramento firm Kershaw, Cutter & Ratinoff LLP posted on its website.

On Tuesday, after receiving what it called an "overwhelming response," the firm posted an update saying that "We think that the iPhone 4 is a remarkable device. But it is inherently flawed."

After summing up the antenna-related complaints from customers and possible solutions suggested by Apple, the firm alluded to legal action saying, "We are looking to see what other remedies may be available."

J.R. Parker, an attorney for the firm, told ABCNews.com that as of Tuesday afternoon the firm had received more than 400 responses to its investigation notices.

"[The comments] are pretty consistent – when you touch the metal band on the side they get substantially reduced coverage and calls dropped so that phone and data service barely work or doesn't work at all," he said.

Apple: All Phones Have Antenna Issues, Hold iPhone 4 Differently

When asked if the firm intended to file a class action suit, he said, "We'll see. We're still looking into it and we're in the process of taking a look."

Apple did not immediately comment on the law firm's action when contacted by ABCNews.com. But after the first wave of complaints, the company quickly responded, releasing a statement that said, "Gripping any phone will result in some attenuation of its antenna performance, depending on the placement of the antennas."

Apple also suggested holding the phone differently, or using a case (or "bumper") with it, which it said would help alleviate the problem.

Later, after an iPhone 4 customer and MacRumors blog reader e-mailed him, Jobs replied with the single line: "There is no reception issue. Stay tuned."

Some tech bloggers interpreted that to mean that the company was considering sending out a software update to fix the issue.

Lance Ulanoff, editor-in-chief at PC Magazine, said that though the antenna issue is a real one, the sheer number of people who have bought the phone in the past week is contributing to the sense of urgency around the problem.

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