Well, just got done with a rather frustrating afternoon. Backstory Apple customer for a number of years. Spent thousands on their products. Purchased an iPhone the second day it came out. Purchased an iPhone 3G the second day it came out as well. Been recommending Apple products to coworkers and family. And Now Today... This morning, I did something incredibly moronic: I left my iPhone 3G in my pants pocket and washed my clothes. I damaged my iPhone 3G. It's waterlogged. It turns on, but there's water under the screen and it's constantly complaining about an accessory that doesn't exist. I schedule an appointment at the Genius Bar of my local Apple Store. I bring it in, say that it's water damaged, know that'll cost money to fix/replace it and I want to start the process. After consulting with the manager, the technician says it's a $299 repair. Well, $299 is what I paid for it a week ago (I was an existing iPhone customer) so I said "Ok, I'll just buy a new one then." "$499." Excuse me? It turns out, if you damage your iPhone with water, you have to pay the UNSUBSIDIZED price to get a new one. Even if you've an existing AT&T customer. Ok, I'll get it repaired then. "Sorry, we don't repair water-damaged phones." Huh? But he just said... Now there was confusion. The tech speaks with the manager and comes back with the final price: $499. I called up Apple personally (with another phone, obviously) to verify the policy. After the person speaking to their manager (apparently, only managers know these things, they confirmed it). So, here's the irony: 1.) Damage your iPhone and claim it "just stopped working": $0. 2.) Damage your iPhone and say it was damaged: $299 repair. 3.) Damage your iPhone and say it was damaged with water: $499 unsubsidized new phone. The moral of this story? Apparently, don't be an honest customer when it comes to explaining what happened to your phone.