We all know that in about 5 hours or so, Apple will be announcing what’s wrong with the iPhone 4 and possibly a fix for their new hit phone. The signal issue is already one of the most popular topics of the summer, together with the World Cup and Oil Spill. Odds are that the Cupertino giant will announce some sort of hardware fix for the new device, as claimed by The Street.

We’ve heard that Apple has created a “design fix” for the iPhone 4 that will insulate the transceiver, allowing the handset to provide a normal signal and stop dropping calls. This is according to Rodman Renshaw analyst Ashok Kumar, who spoke to the company’s partners. They will have to change the manufacturing process of the iPhone 4, in order to include the new internal component.

However, there’s another issue to be addressed: the 3 million iPhone 4 units already sold. They’ll possibly suffer a total recall, in order to have their components switched, a move that could cost Apple as much as $1.8 billion in this quarter alone. If all goes well, with the repair and all, Apple’s image will be back to its former self.

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