I to have fell victim to same video card failure in time. My mid-2011 27" iMac is 7 months past the honored date for free replacement.
I am surprised that Apple is not taking care of each and every graphics card GPU failure with this signature. Clearly,
they identified a board-level reliability problem. Interesting that when the replacement program first came out
the coverage was 3 years and now it is 4 years. The reasoning for doing this is as more and more failures are reported
their models need to be updated and now predict failures out to 4 years and beyond. Fail rates typically are highest
at beginning of life < 6months and at end of life ~10 years for a consumer product. Failures in between this timeframe
should be on the order of 50 DPPM. Most likely this problem triggered a threshold and is an indication of a poor
qualfication during development or a process that got out of control. My basis for calling this a board-level reliability
problem is that I found info where the fix is to remove the GPU, re-ball the interconnects, and re-attach original GPU
to the PCB. This is consistent with a BGA interconnect failure. I am not surprised as these cards draw a significant
amount of power generating heat where thermal cycling hot/cold progressively separates the interface. Many things will
cause this and it is difficult to predict fail rate and fail time unless the product can be qualified. Well guess what,
the consumer is doing the qualification and time will only tell how many failures and in what timeframe. Meanwhile
Apple has already been compensated by the Graphics board manufacturer and Apple is trying to manage the situation with
the least out-of-pocket expense and tarnishing of image. Apple sold ~7M iMacs in total between 5/2011 and 10/2012,
typical replacement cost for the graphics card is $500. At a 1% fail rate, the retail cost to replace all graphics cards
would be $35M or 0.2% of reported record earnings of $18.4B for the most recent quarter.Apple knows the right thing is
to keep their return customers happy. Will Apple do the right thing........