According to Scoopertino, the iHand is made from European beechwood, is swine flu proof and has adjustable fingers.
"You can grip iHand either of two ways: by placing your fingers around its palm, or by grasping the aluminized Extender that telescopes from the wrist socket," news.com.au quoted the website, as saying.
The Extender adds up to 60cm of reach and can even be used to hold the iPhone up to another person's ear.
Its flexible, hygienic and simple design ensures users of a phone call uninterrupted by reception problems.
The iHand is priced at 69dollars and is available in an assortment of pigmentations such as Caucasian, Hispanic, Asian and Kermit.
By the end of July, third-party skins like beauty marks, scars and a hairy hand will also make it to the stores.
Co-founder of Scoopertino, Ken Segall, said their offices have been "buzzing with excitement" over the iHand.
He said: "With so much controversy surrounding iPhone 4's antenna design, we set out to find the funniest angle on this topic.
"Since the reception problems occurred when the phone was grasped by the human hand, an artificial hand sounded like the most appropriate (and most absurd) solution."
Meanwhile, Apple has made it clear that "the (iHand) product ... is not an Apple offering."