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iphone4 reconditioned cost

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Am about to receive an iphone5 NEW from Apple as replacement for my reconditioned iphone4 that keeps having problems. The current phone, which is number 4 over 4 weeks, cannot get WiFi.
However, I have to return the reconditioned one. I paid $208 AUS at an Apple store.
Am keen to keep it for emergencies, can live with no WI FI.
What is a fair price? Apple seem to think I have to pay for the new phone if I keep the old one. What do you think?

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