Why do people automatically assume it's refurbished? They're replacement parts. If Apple manufactures 1000 units, 70% get packaged for retail sale where the other 30% for service parts. If an iPhone gets sent back to Apple for a warranty replacement, that phone is totally dismantled, the parts get sent back to their original manufacturers and Apple..er...Foxconn assembles a new one with the parts they get from the suppliers and that one goes into the service part stock. But it's not like Apple takes your iPhone with a defective proximity sensor, fixes the problem, cleans it up and gives it out to the next customer with an issue.