Ok so I run on iPhone 4 with iOS 7.1.2 and I had same issues like most of you guys.
I bought this headset for biking. I ride a mountain bike A LOT and I was tired of wire headphones so I came across HBS-730 and design is awsome and practical for biking. It really is, whenever you use one earbud or both. The device itself can be hide underneath your neckband so its really neat.
Also whenever you use one earbud or both it's perfect for biking also earbuds fit my "weird" ears quite well and battery life is pretty much same as my iPhone's when playing music.
Now for the issue and how I managed to solve it. Take a note that this is for biking I if you have it for just music listening I'm not sure.
First time I was riding, I had my iPhone in my back pocket you find on most bike-dresses and it was just... horrible. Signal was constatnly dropping and music was interrupted like each two seconds. So I was looking for solution and it seemed that HBS-730 is just flawd design. I've even tried my old nokia with old Bluetooth 2.0 but it didnt help.
So what I figured out is, that if I take those headphones and my iPhone in my hand and place it direcly on my back, it's interrupted. But when I leave space like few inches between my back and phone, it's fine. So I tried to put my iPhone into my small bagpack that is underneath my saddle on my bike and... it works. It's been uninterrupted for hours and it just works. I dont know why but it does but as soon as I put phone direcly on my back or in back pocket, it's interrupted so...
I dont know if this helps anyone, but this is my experience so far. Also this fix doesnt fix the fact that beginning and end of each song is cut (like one second). It's still a minor problem compare to that signal problem.
TL;DR: Just my 2 cents.