The refurbished Iphones have significantly shorter warranties, I believe, unless they changed the policy. In all honesty, the Iphone is not known for the best reliability. Not to say it's out of line compared to other compact devices. That being said, I would rather pay the extra $50 to get an unscratched Iphone that has a one year warranty. Let's face it, if someone returned it then it probably had problems to begin with...