Earlier this month Apple released a point release to iOS 4. The iOS 4.0.1 Software Update improves the formula to determine how many bars of signal strength to display on iPhone 4, iPhone 3GS, and iPhone 3G. The real signal strength remains the same, but the bars on iPhone will indicate it more precisely. This is an issue Apple found dealing with the iPhone 4 antenna issue that some users have reported when holding the iPhone 4 in a certain position. I recommend installing this point release as it's both a stabilization release and a fix to the signal strength indicator. So have you upgraded to the latest iPhone 4.
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