Update: Apple says 0.55% of all consumers who purchased the new iPhone 4 have called the company about reception issues. The company went on to say only 1.7-percent returned their iPhone 4, compared to a 6-percent return rate for the iPhone 3GS. The company said all smartphones have a weakness and that they are not perfect, and that less than 1-percent of the iPhone 4 devices have the reception issue. To remedy the issue, Apple will not conduct a recall, but will offer free cases. In order to get your case, simply fill the registration form on the Apple website starting early next week.

In about one hour’s time, Apple will deliver a press conference where the company is widely expected to discuss attenuation issues found in a significant number of new iPhone 4 devices.

Over the last few days, consumers who exchanged their faulty devices reported the issue was no longer present, though that information has yet to be confirmed.

Apple initially suggested consumers not hold the iPhone 4 from the bottom left side because of the antenna issue, claiming every phone would experience attenuation if touched in the antenna area.

However, the influential consumer report firm Consumer Reports Group published a report that declined to recommend the device because of the problem, saying it had never experienced a similar problem with any other handset.

The report caused the Apple stock to lose more than 10-percent of its value.

Apple has received much criticism for releasing the aggressively priced handset into market with a significant hardware defect.

The Apple news conference could yield a product re-call, which could be more likely if the earlier reports of consumers receiving new and fixed devices are true.

Consumers now have to consider whether they should still purchase the expensive device and have to use a case in order to avoid losing reception.

Many will likely opt not to purchase the device now, considering the defect has not in fact been fixed, instead to opt for smartphones that are arguably on par, such as Google Android powered handsets that in fact offer more features.

The Apple stock (NASDAQ:AAPL) closed down by 0.62% to $249.90 per share following the news.

The company could make internal design changes to fix the problem as it produces new batches of the device later this year.