iPhone maker is working on iOS 8.0.2 with a fix for the issue.
Apple has reportedly pulled out the iOS 8.0.1 update from the App Store over several user complaints over dropped calls in addition to issues in Touch ID capability and data service.
This marks the second major issue that has surfaced with Apple’s latest iPhone since launched last week.
Apple spokeswoman Trudy Muller said: "We are actively investigating these reports and will provide information as quickly as we can.
"In the meantime, we have pulled back the iOS 8.0.1 update."
Since its launch, iOS has been facing instability issues including often crashing of popular apps from Facebook, Dropbox and other services; and seeking consumers to erase their photos, videos and apps in a bid to free 5.8GB of space before installation.
However, Apple also offered step-by-step instructions in a bid to enable consumers to iOS 8 via iTunes.
Apple said in a statement: "You can reinstall iOS 8 through iTunes by following the instructions below.
"We are also preparing iOS 8.0.2 with a fix for the issue, and will release it as soon as it’s ready in the next few days."