I have not dropped my iphone into water and yet they say that it has water damage. all i can remember is once i was washing my hands and a couple of drops fell onto the screen, which i wiped quickly. Im dissappointed that such little water will damage my $400+ product. My friend also had the same problem, her calls would not hold for more than 2 minutes and at apple they told her that the phone had water damage, and she had not dropped into water. im assuming the tolerance these phones have is way low.