WSJ: Apple Won't Recall iPhone 4 Over Antenna Issue

Despite a growing controversy over the reception troubles plaguing the iPhone 4, Apple (AAPL) does not plan to recall the device, The Wall Street Journalreported late Thursday, citing a person familiar with the matter. The company has planned a press conference to discuss the issue Friday.

The paper reported that Apple engineers were aware of the problems with the antenna, which can lose a signal if held a certain way. But Apple CEO Steve Jobs overruled internal questions about the phone's design. Also, test models sent to Apple's partners were disguised in a such a way that the reception problems might have been less noticeable.

Earlier Thursday, Bloomberg reported that a a senior antenna engineer named Ruben Caballero personally raised concerns about the design to Jobs. But Apple disputed that report, publicly challenging Bloomberg "to produce anything beyond rumors to back this up. It's simply not true."

During the iPhone's launch last month, Jobs proudly displayed the new antenna structure, which wraps the two antenna bands around the edge of the phone. Soon after the phones went on sale, however, users began reporting reception issues if the antennas are connected by the user's hand near the lower left corner of the device. Jobs's response?

"Just avoid holding it that way."