I own a iPhone 7 Plus, Matte Black 128gb AT&T Model Phone. I have had the worst experience with the BlueTooth "audio drops" and "sound cuts outs" over the past two weeks. About two weeks ago I purchased a phone mount for my phone. https://www.amazon.com/gp/product/B01GERTHO2/ref=od_aui_detailpages00?ie=UTF8&ps c=1 It was a magnet type mount. Upon setting my phone on the mount the Audio drop outs was worth then before. I restarted my iPhone and it helped, but they cut outs were happening quite a bit. I took the phone into Apple, they had me reset my network settings and then forget my iPhone on my Ford Sync and then add it back.
This did not help. I came back the following day and Apple replaced my iPhone. This still occurred. What I did discover was that when the metal plate attached to my case was removed the drop outs virtually disappeared. I had suspected that interference of my iPhones cellular radio was causing the issue. I can tell you that I removed the case from he phone and tested the metal plate issue and each time I moved the metal plate close to the phone, things just went nuts. I concluded that the mount was a problem.
This week I ordered a new mount that was plastic and clamped onto the phone. https://www.amazon.com/gp/product/B017HME9AU/ref=oh_aui_detailpage_o05_s00?ie=UT F8&psc=1 Now the mount is mostly made of plastic, but there are some metal screws in the mount and I experience the same drop outs. Reading through the 18 pages of this thread I will test out "turning off LTE" tomorrow.
I can compare this level of hardware issue in the new iPhone 7 to that of the Galaxy Note 7. Though the phones are not lighting on fire there is something definitely wrong with them. At this point I suspect there will not be a recall, because Apple will not admit it is their fault but rather the car's audio system being outdated or some weird issue.
With that said, I think Apple tipped that there was an issue as it delayed the release of its AirPods. I am willing to bet that this issue we have all been experiencing is present the AirPods. I think that at this point Apple is working to resolve this issue. If as some has mentioned that this is on both the CDMA and GMM models of phones, this could be a total disaster for Apple.
If the turning off LTE thing does not resolve my issue I will contact Customer Relations and demand a refund. I will downgrade back to a 6s and wait this out. In fact I have pondered testing an Android phone. I am totally frustrated by this as Audio is probably the thing I love most about my iPhone.