The reality distortion field is in full force, folks. While Steve Jobs would have you believe that the iPhone 4 signal loss issue is due to users “holding it wrong”, recent leaked documents via Boy Genius Report suggest that Apple execs were well-aware of this problem.

Don’t expect this mea culpa to be easily accepted and apologized for by Jobs and his ilk though, as the AppleCare staff at all  Apple stores is being told to take a no non-sense tight-lipped approach to the issue. Basically Apple is telling its staff to parrot the company “business as usual” line here.

The only solution that Apple is cheekily suggesting users’ who face this issue, is to use the bumpers case with the device, so that the area in question is covered by plastic. And even in that case, it warns its AppleCare reps not to give the case away for free to appease the complaining crowd.

Here’s the full text of the document as reported:

1. Keep all of the positioning statements in the BN handy – your tone when delivering this information is important.
a. The iPhone 4’s wireless performance is the best we have ever shipped. Our testing shows that iPhone 4’s overall antenna performance is better than iPhone 3GS.
b. Gripping almost any mobile phone in certain places will reduce its reception. This is true of the iPhone 4, the iPhone 3GS, and many other phones we have tested. It is a fact of life in the wireless world.
c. If you are experiencing this on your iPhone 3GS, avoid covering the bottom-right side with your hand.
d. If you are experiencing this on your iPhone 4, avoid covering the black strip in the lower-left corner of the metal band.
e. The use of a case or Bumper that is made out of rubber or plastic may improve wireless performance by keeping your hand from directly covering these areas.
2. Do not perform warranty service. Use the positioning above for any customer questions or concerns.
3. Don’t forget YOU STILL NEED to probe and troubleshoot. If a customer calls about their reception while the phone is sitting on a table (not being held) it is not the metal band.
4. ONLY escalate if the issue exists when the phone is not held AND you cannot resolve it.
5. We ARE NOT appeasing customers with free bumpers – DON’T promise a free bumper to customers.