One of the iPhone 4′s highly-touted features has become its biggest PR nightmare.

The irony is that the now infamous external antenna was supposed to be a breakthrough design that would end the misery of AT&T’s sometimes pitiful network coverage.

I have only been able to duplicate the signal loss issue in a few rare circumstances, and this Engadget post shares the experiences of various editors. While it is clear this issue is not experienced to the same degree by everyone, the Consumer Reports feature determined it is a problem with every Phone 4.

The real danger for Apple is the company is acting like a political team fighting off a scandal: deflect and deny. First it was Steve Jobs telling Ars Technica “avoid holding it that way.” A few days later the edict came down that it was a software issue.

There is a disconnect between the friendly Apple employees who casually help at the Genius Bar vs. the sketchy PR job underway now. These two sides of Apple are now colliding as frustrated consumers find they are forced to fix the issue themselves with a $29 Apple-branded bumper, a third-party case, or even duct tape.

At issue is how this will impact the buying habits of Apple’s fanbase. With 2 million iPhones sold the antenna issue may not matter. However, if loyal customers turn into disgruntled ones this could affect the iPhone update cycle. Less customers may be willing to stand in line for hours on launch day for a product that might include a major glitch.

This will be very interesting to watch as it plays out. Hold on – just not the wrong way.