BoyGeniusReport has posted some pictures of an iPhone 4 that has some significant burn marks on it. The photos are reportedly from an AT&T source after the customer brought in their iPhone 4.
It appears as though the phone caught fire after the employee plugged it into their computer via the Apple USB cable that came with the iPhone.
Its the first time our guy has seen this happen (us too), but the brand new iPhone 4 caught on fire while being hooked up to a computer using the Apple USB cable that accompanied the device. The customer wanted to exchange the iPhone obviously for a new, non-charred unit however the AT&T store in question was out of stock. 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.
Apple products have had reports in the past of fires being started, but nothing has every been widespread. There have been no previous reports of iPhone 4's catching on fire, so it appears this is an isolated issue.

