iPhone Failure Rate: 26% Within 2 Years, 35% to 40% Within 3 Years (with PSA on How to Hold the iPhone 4)

The two-year failure rate for iPhones is reportedly better than the industry average and only 7.5% of the reported failures were due to a hardware malfunction according to SquareTrade, the warranty provider for the iPhone. See the full report here. Last year, a similar SquareTrade analysis found that 31% of all iPhones failed during the first 24 months of ownership so the iPhone's reliability rating is improving. The latest report makes for interesting reading. For example, iPhone 3GS owners have reported almost 50% more power issues than users of the older iPhone 3G. Do note that SquareTrade forecasts that three-year-old iPhones will experience a failure rate of 35% to 40%. Hat tip to Computerworld and Mashable. Well, by then iPhone folks will have bought an iPhone 4.

iPhone 4 -- a "Hands Free" iPad Nano?  EE Times reports that "You could call the new Apple iPhone 4 an iPad Nano because it uses at least seven chips from the popular Apple tablet, according to analysts from UBM TechInsights that have done a teardown of the new smartphone." See First look inside iPhone 4 reveals high reuse. SquareTrade is concerned about the iPhone 4's glass back, which apparently is being used to improve voice and data reception. iPhone reception problems have been problematic especially in high-density cities. However, iPhone 4 reception remains a bit of a problem. "Hold it the wrong way and you can completely lose your signal," quoted from Mashable's How Did Apple Miss the iPhone 4’s Reception Issue? Maybe It Didn’t. See also Steve Jobs to iPhone 4 Owners: Stop Holding the Phone Wrong and the below video. [JH]