Situation: My friend and I were canoeing. Long story short, the canoe flipped over and both of our iPhone 4s got wet. I kept mine in my submerged jacket pocket while he quickly grabbed it out of his pocket and kept it out of the water. After a few days (and placing the phones in the rice), both phones were completely unresponsive- the fates of two water-damaged phones. For some reason, his external water sensors were clearly pink (it probably has to do with the way he placed it in the water). Mine are completely white. The Twist: I immediately researched the water-damaged policy for Apple and discovered that it was not covered under warranty. Because my friend's phone was obviously damaged, he took it to the Apple Store for a Hail Mary: he was completely honest and said he dumped it into the river by accident. Initially, the Genius representative stated that it would be $200 to replace the iPhone and even opened the back casing of the phone, showing him that the internal sensors had also been tripped. However, fifteen minutes later, my friend said that he was not charged a fee at all and left the Apple Store without paying a single dime for a brand new phone. I researched online further and it seems that the water damage policy has been loosened; one iPhone user recounted a duplicate version of my friend's story on another forum. The Dilemma: How would you handle this situation? Because my external water sensors seem apparently unaffected, would it be the safer route in attempting to replace my phone by telling the Genius Bar that the phone suddenly refused to charge on a random given day? Or should I go down my friend's route and tell the truth, hoping for an outcome like him? My gut is telling me to follow old wisdom and tell the truth (I have no problem at all shelling out the $200). However, my phone was bought in Hong Kong and factory unlocked, so I have no idea whether my situation will differ... and I am not looking forward to shelling out another $650 for a phone that will be obsolete by this coming September. Anybody have any insight into the best solution with minimal risk in terms of paying out the full $650? I already know that this isn't the most ethical thing to do and I admit it... please save me the "you broke the phone so you should pay for it in full" because I am fully aware that I am trying to side-step the system. To me, this is more about minimizing the risk involved with replacing an expensive phone than trying to scrounge and get it for free. Thanks in advance.