Problems with iPhone blamed on Infineon Chip, Software fix rumored

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According to Business Week, there is a single cause for all the problems that have plagued the initial launch of iPhone 2.0: the german Infineon Chip Set.

"Faulty software on the chip causes problems when the iPhone needs to switch from wireless networks that allow for faster Web downloads to slower ones", the magazine said.

Even more interesting, Apple is rumored to have plans to fix the problem with a software upgrade. That's a good thing: if the fix required a hardware recall it might have been one of the biggest disasters in the history of product launches.

No official word from Apple -- yet.

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