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I am not really worried about it, but I couldn't find any exclusion of the battery in the legal terms for the iPhone applecare documentation.
Another related question is what would have to happen to the battery for Apple to agree to replace it? Decreasing to 80% capacity after 300-400 cycles probably doesn't qualify...
Well, with the iPod it was covered after a certain amount of wear, say when the battery loses 50% charge or something. I'm sure it's the same with the iPhone... Apple would have too many class-action lawsuits on their hands if people had to buy two or three iPhones to fulfill their 2-year contract with AT&T.