It was all supposed to be so simple: New iPhone + loyal fanbase = happy customers and next phase for the Smartphone market.

However, stock shortages have now been joined by reports of failing tech, as some owners have discovered issues with the Retina display and others state that you can't hold the iPhone 4 by the sides or you may drop calls.

Gizmodo has been sent several cases of small yellow dots or lines appearing on iPhone 4 screens (as the pic above, from the site, illustrates). Some displays have several instances of the problem, whereas others only feature one. They remind us of the infamous dead pixel issues found on the initial batch of Sony PSPs back in 2005, and a similar problem with the iMac a while ago.

Obviously, all technology has teething issues, and there's bound to be some faulty units in circulation, but it'll be interesting to find out how many of those sold at launch experience the same (or worse) failings.

Another, more widespread issue concerns the handset losing signal and dropping calls when held by the side. Mashable reports that there are now dozens of videos and tests popping up on YouTube that illustrate lost connections.

It'll be interesting to hear what Apple's response to these issues will be, and whether it's likely that you'll be able to get a replacement model should your phone also play up.

Let us know if you're having any problems with your new iPhone 4...