CNET is reporting that the issues plaguing the iPhone 3G are related to a chip inside the phone. However Apple believes that this can be fixed through a software upgrade.
Business Week is reporting that, according to its sources, Infineon's chip inside the iPhone 3G is the root cause of the reception problems that numerous iPhone 3G owners have reported over the last month. Nomura Securities analyst Richard Windsor first suggested Infineon was to blame in a research note earlier this week.
They are also hinting that the software upgrade could be ready by the end of this month.
Via CNet
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