Some technical analysts have concluded that the problem of dropped calls with the popular cell phone comes from faulty chips made by German chipmaker Infineon Technologies, USA Today reported Wednesday.

If bad chips are causing connections to fail as calls switch from 3G to other networks, it is not certain if a software update can solve the problem, the newspaper said.

Apple spokeswoman Jennifer Bowcock said Tuesday, "the software update improves communication with 3G networks."

Apple on Monday offered 60 days of free MobileMe service to subscribers after acknowledging "MobileMe's launch has not been our finest hour."

Customers had already been offered a month free as the company continues to make improvements in the service meant to synchronize calendars from a variety of different platforms.