The two people that I know that upgraded (from G and GS) both say that overall reception is better than before and they love their phones. We're in a hilly are

The two people that I know that upgraded (from G and GS) both say that overall reception is better than before and they love their phones. We're in a hilly area. The phones are still sold out in many places, I can't believe there is any significant financial hit over this. Certainly any revisions to later production and next model antenna design would have no impact on the timetable of whatever OS X and iOS projects are in the works. If anything siphons talent within Apple, it'd probably be those continuing to improve iOS for iPad in particular. Although the iPad is doing extremely well, being so new they're no doubt working very hard to make things better yet. Apple is working hard on many fronts. Their projects are planned, so there's no reason to expect any significant unforeseen migration of engineers between projects. Realistically, the biggest thing that drives some people away from the iPhone is AT&T. (on a personal level it is about general dislike of the company not any actual service problem, it's similar to how some have grown to feel about Microsoft. I had the feeling even before the iPhone came out) If Apple can expand to another U.S. carrier without a significant loss due to changed AT&T terms, we could see a real change in the financial picture... more growth. The comment about "many of us are awaiting the latest OSX iteration" puzzles me a bit. While I'm sure Apple will add some cool new things in the future, without knowing what they are can you really be chomping at the bit? Apple certainly does work on development of many things at one time. Release timing is determined by many factors beyond engineering. As far as hardware updates go, I think more people are interested in watching Mac hardware iterations as improved Intel chips come out. But for the bulk of consumers the existing chips are plenty powerful. I'd probably most like to see third parties (including open source projects) make more use of the excellent support for using multiple cores and GPUs in the OS. In particular I'm thinking of VLC and ffmpeg (which is the basis for many video utilities).