Apple Inc. has admitted the poor reception by iPhone 4. The company also admitted that the iPhones show more signal bars than the actual strength.

The Company revealed that all the iPhones have been showing the inflating signal strengths. A new software update is also announced by the Company.

"Upon investigation, we were stunned to find that the formula we use to calculate how many bars of signal strength to display is totally wrong”, Apple conveyed this to iPhone users through an open letter.

Apple in its letter said that the iPhones are showing two bars extra than the real signals. So it can be calculated that phones showing less bars than usual, really have poor reception.

Analysts are enraged at this explanation of Apple Inc., saying that why the company could not find out this problem earlier.

However, Apple is still presenting the wrong way of holding the iPhone, as an excuse for poor signal strengths.

Earlier, in the last week, a law firm has filed a lawsuit against the company on behalf of users. Firm in the suit has asked for monetary damages recovery to the users. The firm has also demanded for a casing for free, as Apple has said that the signal problem of iPhone can be solved if the phone is wrapped in one of its bumpers.