Apple to fix iPhone 3G reception issues via software?

Apple is planning on issuing a fix for current iPhone 3G reception problems through a software update rather than a physical recall, according to a BusinessWeek report. Citing two anonymous but “well-placed” sources, the article claims the problems are being caused by glitches related to a communications chip made by Infineon, corroborating an earlier statement from Nomura analyst Richard Windsor. One BusinessWeek source suggests that the glitches are solely caused by the Infineon chip, which the article notes is fairly new and is yet untested in high volumes. Another source claims those problems may be also be linked to overly-agressive 3G bandwidth demands, saying that Apple programmed the Infineon chip to demand a more powerful 3G signal than the iPhone really requires, causing the phone to decide that there is insufficient power available, and switch to the slower (EDGE) network. According to the report, the problem appears to be increased in areas where there are more active 3G devices than AT&T and Apple had planned for. Neither Apple nor Infineon has yet made a statement regarding reception issues with the iPhone 3G.