Infineon Chip May Be Causing iPhone Troubles

According to a research report from Nomura, complaints of dropped calls and unreliable Internet connections on the new iPhone 3G may be caused by faulty software on a chip made by Infineon. Nomura analyst Richard Windsor wrote in a research note that the problem likely involved the 3G cellular network communications chip: "We believe that these issues are typical of an immature chipset and radio protocol stack where we are almost certain that Infineon is the 3G supplier."

Although representatives for Apple and Infineon declined comment, BusinessWeek reported that Apple plans to fix the problem with a software update in the near future. At any rate, a spokesman for AT&T, the exclusive U.S. carrier for iPhone, said that it was working well on AT&T's network and that the carrier had received very few complaints: "This is not something that's high on our radar screen. It's not something we've had a lot of complaints about," said AT&T's Mark Siegel.

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