I just read on the BGR Web site that the first reported case of an Apple iPhone 4 catching fire has been reported. The user had the iPhone connected to their computer using the supplied cable via a USB port. The pictures show that the cable and port connection to the iPhone had been damaged and it appears the phone may not be repairable. The article also stated that:
An Apple Store did confirm to our AT&T connection that this did appear to be a defective USB port and not some sort of user error. Our source went onto say that the phone bezel was extremely hot (obviously), and it slightly burned the customers hand. The USB port in the phone was slightly melted and the cord was badly melted (as is apparent in the pictures). Hopefully this is the only time we see our beloved iPhones meet a fiery death. We’ve got one more picture for you after the break.
I am always skeptical when an alleged ‘first report’ is made, since it could just be someone wanting attention. I believe that it is too early to confirm the validity of the report, until other reports are made. You could get the same result by holding a lighter to the cable and phone.