Apple has made changes to its internal screening process pertaining to iPod liquid damage, a source tells “The Boy Genius Report” (http://www.bgr.com/2010/11/09/apple-amends-internal-ipod-water-damage-policy/).
“Apple builds a series of Liquid Contact Indicators (LCI) into its iPod line of devices. When these LCIs come in contact with moisture, they become activated. In the event of a warranty claim or other repair, the LCIs indicate to Apple that the device in question may have been affected by a liquid,” says “BGR.” “Employees of Apple Stores and AppleCare Repair Centers then have specific guidelines used in the event liquid damage is suspected. Previously, the presence of an activated LCI within the headphone jack was cause enough for employees to state that an iPod may have been damaged by water or another liquid. Now, employees must first inspect the iPod for other signs of liquid damage before reaching that conclusion. It is currently not known if the new policy applies to iPhone models as well.”