Wow, Apple now admits its new iPhone 4 has reception problems and are promising a fix soon. But there’s a catch: Apple continues to deny the problem is with the phone’s hardware.   Rather than admit they rushed a defective product to market, Apple released a press statement today attributing the problem to the way the signal bars are being displayed.

“Users observing a drop of several bars when they grip their iPhone in a certain way are most likely in an area with very weak signal strength, but they don’t know it because we are erroneously displaying 4 or 5 bars. Their big drop in bars is because their high bars were never real in the first place.“

From CNN.com: