The latest iPhone update for the iOS 4.1 does not solve the problem associated with the proximity sensor of the iPhone 4; the issue results in users pushing on-screen buttons like mute and speaker mode while on call.
More frustrating is the fact that Apple CEO Steve Jobs acknowledged the issue during an emergency press conference last and promised to deliver a patch in the 'next software update', in front of the media.
However, the latest iOS 4.1 software update - which is only available to developers and currently in beta - does little to patch the bug, sticking to only fixing a security issue that allowed uses to easily jailbreak their device.
Apple's support forum is filled with users describing the extent of the proximity sensor issue. One such user has written that “It results on me hanging up, putting calls on mute, and dialing numbers accidentally while i'm on the phone. This occurs on 90% of my calls.”
The proximity sensor issue is the second major problem, after the Antennagate, that hit the iPhone 4 which continues to sell very well in the US and European markets.