Apple has released a software update to rectify problems with its new iPhone 3G after users reported dropped calls and bad reception.

The fix is for unspecified “bugs” in the much-touted iPhone, which sold more than a million units worldwide in its first weekend, and is the second glitch the US technology giant has had to deal with since the 3G version launched in July.

The launch day of the new iPhone saw thousands of frustrated customers unable to activate their phones because the iTunes system crashed.

The latest problem is believed to spring from the Infineon chipset that is used in the iPhone 3G handset.

Bloggers have speculated that the chip is programmed to seek out a better 3G connection than is needed.

If the 3G signal is found by the chip to be too weak, even though it could be used, the chip chooses to connect instead over the slower network.

Blogs have claimed that Steve Jobs, chief executive at Apple, said the problems have affected just 2 per cent of 3G iPhone users, or about 60,000 people.

Technology websites put the software update to the test last night with inconclusive results.

The simultaneous launch of its MobileMe synchronisation service for e-mail, contacts and calendar service in July was also botched. Apple has just announced a further two-month free extension for all MobileMe subscribers after admitting its launch was “not our finest hour”.

But more than 60 million software programmes have been downloaded from iTunes in the month since the iPhone was launched, earning the company about $30 million (£16 billion).

At that rate, Apple could expect a new revenue stream of about $360 million a year from related software as owners of its iPhone and iPod Touch discover that they can enhance their devices by downloading programmes from the web.

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