Trouble Ahead for Apple's iPhone 4?

June 30, 2010— -- 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.

"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.