Consumer Reports, one of the most influential product review magazines, has decided not to recommend Apple’s latest iPhone to consumers. The magazine giant, around since 1936, said the device has significant issues involving 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.”

Apple has acknowledged that this is a reoccurring problem with their new device. They chalked the problem up to faulty software, but Consumer Reports seems to doubt that. The side rail on the housing of the phone is designed to be an antenna. Placing your fingers on it can disrupt your signal. Realistically, where else are you supposed to put your fingers? Apple has announced a software update to be released in the coming weeks, but has yet to fess up to any hardware issues.

The magazine offered a potential quick fix to those who have already purchased the phone and are experiencing problems. “An affordable solution for suffering iPhone 4 users: Cover the antenna gap with a piece of duct tape or another thick, non-conductive material. It may not be pretty, but it works.” Somehow, I don’t think that will go over well with consumers who just shelled out top dollar for the latest, greatest technology.

The magazine did give the phone high marks for its display and the phone’s camera, calling it the best they’ve seen on any phone. It also offers high praises for the devices improved battery life over its predecessor and several of the new features including the front facing camera.

The magazine says they will not recommend the device until “a permanent—and free—fix for the antenna problem” is delivered by Apple, until that time, they recommend purchasing the older, 3G model. If this influential publication’s review isn’t a wake-up call for Apple, I would expect a lot of angry consumers.

Sources: ConsumerReports