A large number of complaints have surfaced in recent weeks on the internet from users who claim their new iPhones cannot connect, or stay connected to 3G networks. Some report dropped calls as their devices switch from 3G to AT&T's much-slower Edge Network. Apple's advertising tagline for the new iPhone is "Twice the speed at half the price," prompting one angry user to file a lawsuit against the company, and she is seeking class action status.

Steve Jobs may have acknowledged problems with iPhone Apps freezing in an e-mail bearing his name that was sent to an IPhone User. In the e-mail, Jobs reportedly said the problems appear to affect about 2 percent of all iPhones shipped, and that work was underway on a software patch that will be released in September. On Monday, Apple released iPhone update v2.0.2, telling users only that it contained "bug fixes."

Mobile Technology analyst Michael Gartenberg says the issue may be overblown. He tells USA Today that he's seen the same problems with phones from other manufacturers. "Cellphone coverage is tricky," he said.