Well! I did a heck of a lot of research on this tonight. Hours. I had an iphone 7 in my cart ready to buy. I have decided not to buy it. I headed over to ebay and am either buying a used iphone 6s (I had good luck with them but they are getting really old now) or a google pixel 1st gen to get me by. My very old iphone is now dying and I need a phone-even a temporary used one.
I ran into an article that interviewed 2 experts in the phone repair business. They did say this is ultimately a hardware issue, yes. Due to a design 'flaw' as they stated it is, the connections to the audio IC are prone to separating or breaking. This is either due to drops as someone earlier stated, tho they could have happened a long time back. It could also be due to phone bending, such as carrying it your pockets. Although a break may not occur right away due to a drop or bending, it of course weakens the connections breaks that little trail along the board underneath the chip (dont know what they are called sorry lol). Over time and continued use, they eventually break. One of the 'experts' also stated that while a software update could cause this issue, it was correctly called out again by another poster here, that the heat generated by updates (remember how hot the phone gets when updating) can also generate enough heat to deliver the final fatal blow to the connections by expanding them and of course, causing a break. This also lends credibility to those saying Apple started to do the right thing, but eventually withdrew once most care programs and warranties started expiring, knowing these issues were coming and were going to get much worse-and boy have they. With warranty or care plans expired, they could demand a fee to fix or tell you to buy a new phone-you're out of coverage.
I am a long time Apple customer. Let me say, I recently had a very disheartening unrelated complaint last year over, of all things, an iTunes pre-order. Something went crazy and when the time came for the release, iTunes kept telling me it wasn't time yet. Due to the way this particular release was done, in increments with billing, I had paid for the entire album with the charges for the early release tracks... They put me through heck for 2 weeks over that issue-having me delete, reinstall iTunes, reboot my computer, send screen shots. Eventually they gave me a refund of $2... the cost of the release was already covered, but there were 9 more tracks, which I was forced to buy ala carte (no finish my album there!). So I had to pay double - sound familiar? Only had 2 issues in the past-way back in the day. Then we had a 1st gen ipad that went berzerk. Took it to Apple Store, and they replaced on the spot. Before that, had purchased an ipod shuffle that also went berzerk. They actually sent us a replacement "overnight" along with a return FedEx envelope to send them back the old one! THAT was customer service. And that is why we have been with them for so long.
I am so saddened to see whats happened since Mr. Jobs passing. Battery issues (several!), touch disease issues, and this with the iPhone 7 and many others - and Apple dragging their feet, denying responsibility.... This scared me right out of a purchase of a new iPhone 7. Thinking back to my experience last year, and reading what you all have been through for what is definitely a design flaw, I just couldn't justify taking the risk, and I am not able to afford an 8 or X right now.
I guess we all have decisions to make. I am going to wish everyone luck and go back to deciding which used phone to buy. I just thought I'd be long winded and relay my findings. So if you don't want to buy a new phone or pay for repairs, it is said you are most likely on borrowed time with your iphone 7.