I keep hearing people say that
refurbished Apple devices are no different than brand new Apple devices.
They are, in fact different. In many ways, the Apple refurbished device is better than the new one.
I have purchased many Apple Refurbished items over the years, including Macs, iPods, AirPorts, Apple TVs, and other things.
You wouldn’t be able tell the difference between new and refurbished out of the box. From my experience, the box is even the same, it just now has a refurbished label and SN. It used to be that refurbished ones came in a different box, sometimes just a plan brown one. Although, one or two Apple Refurbished product I purchased a long time ago came in what appeared like original packaging and label.
Refurbished have the same warranty and qualify for Apple Care.
The real differences include what is done to the Apple Refurbished products. They are tested extensively, while new products just go though a basic test.
Think of it this way, if you have two identical looking devices, same internals, same warranty, but one had extra testing reducing its chance of failure and is cheaper, would you buy the more expensive higher risk one?
With everything else being equal (time until it arrives at my home, BTO options, form, fit, function...), I personally would always buy a cheaper Apple Refurbished over full retail.
Although, many times, you can find better deals on new Apple products from sales at online and retail stores like Best Buys.
If this were true, why doesn't Apple sell the refurbished as brand new devices?
As other people mentioned, there are consumer laws preventing this.
Another important thing to note is that Apple's Refurbished products is
NOT the same thing as refurbished Apple products.
Buying from third party venders and eBay, many times they have things labeled as "refurbished", but afaik, there no legal definition of refurbished and you never know what exactly was refurbished. Maybe the seller considers just a wipe of the OS and a wipe down with a damp cloth as refurbished. They don't always have a warranty, or one via Apple. They don't always qualify for AC. So, unless I get a really good deal, I stay away from these.
Apple clearly defines what they mean by refurbished on their website. They also have a full warranty and can get AC.