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Quick update -

He called Apple and after about 30 minutes on the phone they agreed to send him a new iPhone 4S. He said alot of the questions they asked were about whether or not the phone was plugged in at the time of the incident.

Anyway, Apple seems to have taken care of him, so he is happy.

BTW, I asked, the phone was bought new, had no repairs, and was not jailbroken. He had only been using factory chargers as well.
 
No they don't want it back. He actually went to the ATT store and they called Apple for him. So i'm not sure what department it was. He did not have AppleCare though.
 
It's the secret mechanism Steve insisted on putting into every iPhone to signal the owner when it's time for an upgrade.
 
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