Steve Jobs: 'We're not perfect, phones aren't perfect'

The explanation he gives is the fact that the new design on the iPhone 4 was not shown to anybody, so there were no cases, which fix the problem.

Jobs adds: "When our engineers look at this data [on dropped calls], it's hard not to admit there's a problem though adds that, even with the data, he thinks this problem has been "blown way out of proportion."

"And that's what I had to present to you today," Jobs says, inviting Apple execs Tim Cook and Bob Mansfield to join him on stage to answer questions from the crowd.

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