My 3 week old iPhone 4 started acting sporadic and unstable (trying to power down, acting as if the sleep button was constantly pressed, etc.) I took it to the Apple Store, whom I assumed would simply swap it out or repair the issue. They claim water damage even though I am POSITIVE not more than one random drop of water has ever hit the phone in the short time that I have had it. Though i vehemently denied this could be the problem and welcomed them to open it up and inspect, etc., I was told that since I had Apple Care and NOT Apple Care Plus (WTF, was never even offered that), I am out of luck and the repair is NOT under warranty. I am livid and of course have no choice but to cover the cost if I want to continue using iPhone. What a scam, we are certainly at the mercy of the Apple giant who can claim whatever they want to get out of replacing what is either a faulty product or severely fragile one, if one drop of condensation can ruin what should be a better built product. Total fraud.