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What’s Behind the iPhone 3G Glitches

August 15, 2008
by Peter Burrows
Computer Editor, BusinessWeek

Peter Burrows

Complaints over dropped calls and choppy Web connections on Apple’s iPhone 3G have sparked a wave of debate in the blogosphere over the root cause of the problems. Two well-placed sources tell BusinessWeek.com the glitches are related to a chip inside Apple’s music-playing cell phone. The sources add that Apple (AAPL) plans to remedy the problems through a software upgrade rather than through a more disruptive step, such as a product recall.

The news reinforces analysis by Richard Windsor of Nomura Securities, who said in an Aug. 12 report that the problem involves a communications chip made by Munich-based Infineon Technologies (IFX). Faulty software on the chip causes problems when the iPhone needs to switch from wireless networks that allow for faster Web downloads to slower ones, the people say.

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