I just bought a 2012 Prius III package last weekend. I have an AT&T iPhone 4. I had this problem for the first time 2 days after I bought my car. I plugged my iPhone 4 into the USB port and my song info is displayed on the Nav screen (like it supposed to be) but the audio was played out of the iPhone speakers. I have unplugged it and replugged it in and it still would not come out of the car's speakers, only the iPhone's speakers. I got a phone call and my bluetooth worked fine. The other persons voice came out of the car speakers like it was supposed to. When I ended the call my iPhone started working as it was supposed to and played out of the cars speakers. It happened one more time later that day, but this time making a call didn't help. The next day I plugged my iPod instead of my iPhone and it was working fine for about 20 mins. Then there was a few seconds of silence. Then it started playing but every few minutes it would start skipping like an old record. Then today, the same thing happened with my iPhone where it would only play out of the phone's speakers. I was really close to a dealer, so I stopped by. The service advisor played with my phone for a few minutes and said he has never seen this before and had no idea but I would have to leave my car AND my phone for about 5 hours for them to figure it out. Then I got a call and as soon as the call ended my iPhone started to play correctly. Needless to say I did not want to leave my car AND phone all day, I thought I would ask the experts here first. Has this happened to anyone else? Or does anyone have any suggestions?