Apple replacing water-damaged iPhone, 3G for $199

Apple has instituted a new policy under which iPhone owners who have accidentally caused water damage to their handsets—an issue not covered under Apple’s warranty—can buy a refurbished replacement unit for $199. ifo Apple Store reports that the new policy allows these users to replace their iPhones without the need to pay AT&T’s upgrade-ineligible pricing or add another two years to their contract. A commenter on the story indicates that the $199 price is good for replacements of both 8GB and 16GB units, and that it applies to the original iPhone as well as the iPhone 3G. The iPhone features four liquid submersion indicators—one in the headset jack, one in the dock connector, and two on the phone’s interior—which enable Genius Bar workers or other Apple technicians to determine whether an iPhone problem could have been caused by water damage.