The iPod LCD flaw that results in the LCD screen failing after simple actions as putting the iPod in your jeans pocket is “limited”, says Apple.
From Macworld:
In one case a 15 year-old boy told the website: “I pulled my iPod out and my heart dropped. The LCD was half destroyed, but there is no visible scratch or mark on the outside of the iPod.”
Apple confirmed the problem exits, saying: “This is a real but minor issue involving a vendor quality problem in a small number of units. Our figures show this issue has affected less than 1/10 of 1 per cent of the total iPod nano units that we’ve shipped. It is not a design issue.”
Affected customers simply need to contact Apple to arrange a free replacement unit.
This is different from the problem that many other iPod nano owners are reporting about the easily scratched screen.