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That's terrible service. It's unethical to have a defective phone replaced with a refurbished one. You can't put a spin on that.
 
OP:many on this forum insist that refurb iphones have new screens and bodies... which I find difficult to believe.

I think you case adds weight to the notion that apple won't discard a perfectly good (though 2nd hand) display and replace with a new screen if there is no need (e.g. the headphone socket is faulty or the customer just returned within 14 days).
 
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