If returned...

[guesswhatman]

If someone returns an iphone, do they send it back to apple and clean it up, repackage it and then sell it off as new to an unexpecting customer?

[alb0zf1n3st]

Maybe depending on what the problem is.. I know with many phone companies when someone reports a phone lost or something they dont get a brand new one they get a refurbished one they think its brand new.. but who knows how apple and at&t are working this one out

[TrippalHealicks]

I'm gonna go with a big "absolutely not" on this one.
The device is shipped off to the manufacturer, inspected, reconditioned, repackaged and then re-sold, maybe....if not just taken apart and used for parts.