Consumers Reports says the iPhone that works on Verizon Wireless' network has a similar problem to the original. If the phone is held in a certain way, it could cause dropped calls or problems dialing out.

Consumer Reports tested the Verizon iPhone 4 and found that covering tiny gaps in the metal band surrounding the phone's edge causes "meaningful decline in performance."

In conditions where cell signal is weak, the iPhone 4 would drop calls when the user covered the gaps by holding the phone in a specific — but natural — way.

Consumer Reports conducted similar tests last summer on the iPhone 4 that runs on AT&T Inc.'s networks. In both cases, the publication has decided not to include the phone on its list of recommended smart phones.

Apple's shares were up 1.4 percent in afternoon trading.