tdgeek:
I assume its more efficient for Apple to replace with refurbished, but in NZ they should repair them to ensure that user gets back all the scratches and dust and grime
Guessing that would be more expensive to do than simply swapping them out. Also often inorder to get thing out of phones and repair them, components also could get easily damaged, due to how complex and small the components are. Whereas something that is remanufacturered is all full tested again.
