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http://daringfireball.net/2010/06/iphone_4 – “After using so much aluminum in recent hardware designs, it’s interesting that they’re using stainless steel for the iPhone 4. Update:  Stainless steel can be used as an antenna; aluminum can’t. That’s the explanation.”

Don’t tell that to these guys: http://www.cushcraftamateur.com/

More likely explanation is that stainless steel is far more rigid.

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