But there is likely more work done by people sitting at benches to build a new iPhone than to refurb an existing model. Quite a bit of manual work going on at Foxconn.While I also think the people at the store don't really know this kind of stuff, I'm inclined to agree with that guy.
I suspect it's far cheaper for Apple to just break down broken phones for scrap material and give you a new phone. Paying people to sit at benches doing tiny repairs and THEN having to put a repaired phone through a series of tests to make sure it really works... I feel like that has to cost more than what they pay Foxconn to just run 1 more off the assembly line.
Although we cannot know what the real story is on refurbs my money is that they do refurb them. However, I would also suspect that when or if there are not enough refurbs to handle warranty or Apple Care replacements that new iPhones are used as well.
Michael