The newly released Apple iPhone 4 appears to have a significant design flaw that means the device loses network signal when you hold it in your hand.

Reports are flying across the internet that highlight the problem, and TechRadar has discovered that its own handset is badly affected by the same problem.

UPDATE: Apple has commented on the problem, insisting that all phones suffer from the flaw to a degree.

We found that holding the handset quickly brought the handset down from five bars of 3G coverage within our offices to limited edge or even no data network coverage at all.

But you don't have to take our word for it – here's our video footage of the incident.

You will notice that as the video draws to a close, the phone actually loses all network coverage.

It's a major problem for the latest iPhone – which saw plastic bands placed around the metal rim to prevent aerial problems.

This flaw was first flagged up in the MacRumors' forum, but we had to do our own video to see if this was an actual problem in the UK.

Worryingly, it seems that it is. Although when we tested a call, it didn't really seem to affect the quality. But even if this is just a visual flaw, it's definitely a problem.