I didn't say the machine is a sham. The machine replaces the display, yes.
Actually Mr Know it Nothing. The machine doesn't replace the display at all.
I had to take a phone in last night for a broken display and asked the Genius about this rumor and he said its basically false. They hand replace the screen and the machine just tests that all the sensors and the touch functions work properly. And as I've had dealing with this Genius for 4 years I trust him not to blow smoke up my butt.
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The device replacement instead of repair is one of the things that makes Apple products worth the price premium to many. It's not "abuse" - it's being used to a very high level of service, and receiving it.
I believe he's referring to resellers and the like who jack up phones to get them replaced. Like they would try to jailbreak and unlock phones and brick it so they would go in and rip the connectors so it won't power on and get a new one for their defective one.
Rumor has it earlier this year they started requiring that every phone that doesn't turn on or charge is opened and inspected for such things. Just like they do in Asia to make sure it's not a knockoff