So you've dropped your brand new iPhone (3G(S) / 4) in the toilet, had a swim with it on vacation or let it enjoy a spin in your washing machine. I can relate to how you feel when you just found out your iPhone experienced water damage. Shock, disbelief and sadness considering the amount you'll have to shell out to replace your most beloved cell phone because you think it has been damaged beyond repair. The first thing I did was check on the internet and tested out all the information I could find on the subject. Below I will describe the best way to take on your iPhone water damage.
Determine your iPhone water damage
The water damage of your iPhone really depends on how long and how far it has been in the water. When it falls into the water and you quickly take it out it will still be on most of the time. When it is, turn it off immediately with the power/sleep button on top. If it gets stuck on the white pinwheel when turning off hold the home button with the power/sleep button for a few seconds and it will turn off. When however your iPhone has been in the water for a long amount of time it will have shut down by itself. Whatever you do (and I know this is tempting) do not turn the iPhone on at this time.
Take out your sim card and perform initial drying of your iPhone
Pop out the sim card casing with a paperclip or the tool that came with your iPhone and leave it to dry along with your sim card. Next take a paper towel and wipe your iPhone dry as good as you can. Then, gently shake out the big water drops from your device. If you have a blow dryer turn it on on low heat (important) and blow dry the simcard opening, headphone jack and the dock connection on the bottom for about fifteen minutes. Do not turn your iPhone on yet!
The iPhone rice trick
There will still be a lot of moisture inside your iPhone your blow dryer can't take care of. This method takes patience and discipline but is vital for recovering your iPhone 90% of the time. Take some uncooked rice (brown or white) or some silica gel packets (which you normally find in newly bought wallets or bags) and place it along with your iPhone in an airtight spot, like a ziplock bag. Store it all in a warm place and leave it there for a few days to a few weeks (depending on the amount of water your iPhone has absorbed). The rice (or Silica packs) will absorb the remaining water from your iPhone.
iPhone recovery
When your iPhone has been in rice for a period of time take it out of the container or ziplock bag and plug it into a wall outlet. Depending on your iPhone's status you will see either a low battery icon (the preferred situation) a 'connect to iTunes' logo, which implies that your iPhone needs to be restored, or nothing. When no screen comes up don't hesitate to leave your iPhone in rice for a few days more cause there might still be some water left. When this still forms no solution, you can decide to disassemble your iPhone for further drying and cleaning the internals with rubbing alcohol.