Bloomberg reports this morning that one Apple engineer and antenna expert, Ruben Caballero, may have warned Steve Jobs and other top executives about the antenna issues currently haunting the iPhone 4 early before its release. A person familiar with the matter said that he warned:

The metal bezel surrounding the handset would need to be separated in sections to create individual antennas capable of handling particular ranges of the radio frequencies for different wireless networks, the person said. If a user covered one of the seams between the sections, their finger would act as a conductive material, interfering with the signal, the person said.

Consumer Reports also recently went as far as to not recommend the iPhone 4 because of what it considers a design flaw in which holding the bottom left corner of the phone can significantly reduce the antenna signal and even lead to a dropped call.

There's currently a possibility of a recall at the press conference on Friday.