Consumer Reports flunks the iPhone again

US testing publication Consumer Reports has declined to recommend Apple's latest iPhone after continuing reports of antenna problems.

Consumer Reports said that recent tests on the Verizon iPhone confirm that the CDMA handset is vulnerable to the same reception issues that plagued the GSM-based iPhone 4 last summer.

The problems occur when the handset is held in the palm of the hand with the fingers and thumb covering the metal ring on the side. Reception quality drops dramatically when the hand covers a small gap in the casing.

Apple has consistently denied the existence of the so-called 'death grip' issue, despite Consumer Reports describing the hand position as a "specific but quite natural" gripping method.

The problem can be resolved by using a case or applying a 'bumper' liner to the outside of the handset.

The reception issue, unofficially dubbed 'antennagate' in the press, drew headlines last year after the iPhone 4 was released.

Apple eventually held a press conference at which chief executive Steve Jobs announced a special offer of free bumper cases for a limited time.

Apple claimed at the time that handsets from several other vendors suffered similar antenna issues.

However, Consumer Reports said that similar tests on Verizon handsets from Samsung, HTC, Motorola and LG showed no drop in signal quality as the result of hand position.

The publication will not list the Verizon iPhone as a 'recommended' device, but said that, aside from the reception problem, the phone rated extremely well.

"The Verizon iPhone 4 closely resembles the original AT&T iPhone 4 in many positive respects, including great multimedia functionality, a sharp screen and the best MP3 player we've seen on a phone," wrote Consumer Reports electronics editor Paul Reynolds.

"Unfortunately, it also shares with its sibling the possibility of compromised performance in low-signal conditions when used without a bumper or case."