There are white squares on my screen at the top. Apple care is telling me I'm out of warranty. This seems like an Apple LCD screen issue. The problem seems to be widespread. How is apple dealing with this. apple care told me it would cost me 260.00

Apple should be fixing this problem for free. It is a hardware issue. Check the Web. A lot of your customers are having the same problem. If I have to spend money to fix this I will be choosing a different cell phone provider

That the problem has happened to someone else, or even to a couple of dozen people, does not make it a "widespread problem". Apple has sold millions of iPhones, so even if hundreds have experienced the problem that's still a very small failure rate.
Your iPhone is out of warranty, so you will need to pay for service. If Apple finds this to be a screen issue, in many Apple Stores they can replace the screen for US $149. If it's not a screen issue or your local Apple Store can not yet replace the screen, then Apple replaces the entire iPhone. Those are their policies, and complaining about it, particular here in these user-to-user forums, will accomplish nothing.
You are free to pay some unauthorized shop to attempt repair, or attempt your own repair, if you wish, though you will void any further support from Apple, for any price, if you do.
There is nothing more anyone here can tell you.
Regards.

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