Background, My phone got DRENCHED while mountain biking yesterday (it was inside a 'waterproof' bag) but there was so much water it was hopeless. phone started freaking out, (alerts for accessories ect), water behind the glass, speakers muffled, microphone muted ect. i was afraid to even turn it off thinking itd never come back on. I put it under a warm halogen desk lamp for 6 hours, long story short, speakers dry up, mic starts working again, even the water behind the glass goes away. phone seems to be working 100% good as new, dodged a major bullet but now im worried what long term health issues this will have on my iphone. Meanwhile, the white iphone has always had hairline cracks around the corners of the white casing, at the vibrate switch and some near the sleep button, they never bothered me but i thought it would be my silver bullet to get a new phone. i researched the water indicators on the phone before bringing it to apple, there are 3. the one in the bottom of the headset jack which turns pink/red, mine surprisingly stayed white. theres another one, at the bottom inside of the dock connector (i was not aware of this one), mine was scarlet red. and theres a 3rd somewhere inside the case itself. the tech agrees to replace the phone for the hairline cracking, no questions asked. (took 3 seconds) but after examining the bottom water indicator with a flashlight, he rightfully, refused the replacement (understandably). He said hes never seen one that dark red and the phone still worked. i argued (immorally so) that the indicator must have been fouled up somehow or malfunctioning. (a losing battle of course) longer story short, they replaced the phone with a new one for $100 bucks. which i felt was more than fair. depending on how, uhhh, morally flexible you are about apple inc., i suppose if you were careful you could gently cover the water indicator on the bottom dock connector with a white dot or piece of paper using a very small set of tweezers. i suppose it can be easily done to the headset jack indicator as well. i was not fully aware of the location of the other water detectors and where the bottom one was visible from. Just a post to the forum if anyone has similar issues, cracking case, and or water damage. I got lucky in this story on more than one account. also points of interest. He said that those indicators can turn pink simply by being in moist ENVIRONMENTS! which is REALLY frustrating because once they change colors apple pretty much voids any support. He said even keeping it in a steamy bathroom while showering can change them. I dont think that leaves the consumer with any assurance that these indicators are fair or function properly if they can be changed that easily. Thats not fair to the buyer. mine obviously worked (water indicators) but i thought to put this info out there.