Photo courtesy of iStockphoto, Jon Schulte

The snazzy new iPhone 3G is driving early adopters crazy with severe network connection problems - and according to BusinessWeek's Peter Burrows, while the problem comes down to the iPhone's Infineon chip, the company is hoping to resolve it via an upgrade.

"Apple plans to remedy the problems through a software upgrade rather than through a more disruptive step, such as a product recall," Burrows writes.

Still, don't rule out a recall just yet. "Sweden's leading engineering publication [Ny Teknik]... said they had obtained a report that showed... the likely cause of the 3G iPhone problems is faulty adjustments between the handset's antenna and an amplifier that receives very weak signals from the antenna. Such a defect could result in inadequate 3G connectivity and slower data speeds," according to redOrbit.

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