Apple chief executive Steve Jobs said that reception problems with the new iPhone 4 have been overblown but apologized to buyers who experienced issues and offered free cases as a fix.

The company is hoping a 29-dollar rubber-and-plastic case will put an end to the debate over the antenna on what Apple chief executive Steve Jobs calls "perhaps the best product we've ever made."

The case will be offered free to all buyers of the iPhone 4 through the end of September, and customers who have already purchased the case will be reimbursed.

Noting that Apple has sold more than three million iPhones in just three weeks, Lamba also said "clearly, the antenna issue has not made any dent in demand for the new phone."

The iPhone 4 has been hit with complaints about dropped calls from the moment it appeared on store shelves three weeks ago.

Some iPhone 4 users claimed they lost reception when holding the lower left corner of the phone, since iPhone's antenna wraps completely around the device.

Jobs acknowledged that the problem is affecting a small percentage of users and some of that problem is inherent in every smartphone.

The press conference held on the 16th of July can be watched here

An IDC survey found that the iPhone 4 antenna issue is sending mixed results. On July 16, 2010, IDC fielded a brief directional survey done in collaboration with the IDG TechPanel that seeked to provide insight into the impact the technical problems with the Apple iPhone 4 will have on the buying behavior of those in the market for a new phone. The survey indicated that 66% of current iPhone owners have been delaying their purchase of the iPhone 4, thus lengthening the normal upgrade cycle associated with the release of a new device. However, the antenna issues do not seem to be impacting the 74% of non-iPhone owners who indicated that they are not delaying their purchase plans.

Earlier this month, Apple had confirmed that the antenna issue was related to the iPhone's 4 software that determines how many signal bars to display. To solve this issue, the company released last week iOS 4.0.1 software update for iPhone 4.