I went in tonight to get my white Verizon 4 16gb replaced. Let me start by saying that I've owned every generation of the iPhone and this is the first time that I've ever had to have one replaced. The genius took my new phone out of the black box that everyone talks about and I then decided to ask him about refurbished iPhones. I started by saying that I knew this was a refurb and asked him about the process that I had seen mentioned many times on these and other forums. I asked was it true that they send back returned iPhones and replace the front, back and battery and whatever issue there might be and then give them out as replacements. He told me no, that this was in fact a new iPhone. He said that was the process they used to use, but now every replacement is a brand new phone. He said the returned phones are sent back and then melted down. So there you go. The genius seemed to really know what he was talking about. I'm curious what others think about this.