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A refurbished phone will vary based upon a number of things, including phone model and where Sprint and manufacturing partner are in the model run.
For example, on certain models Sprint and the manufacturer contract with a third party to do refurbs. Any phones that are returned for technical problems, and even some phones that are simply not sold are sent to the contractor which is supposed to basically go through the software and hardware and make it like new. Since the contractor has to be licensed by the manufacturer, Sprint is often in the dark about much of the process.
on newer phones the manufacturer is the one doing the refurb work. so for the Pre, HTC (the people who actually make the phone) do the work. Refurbs go through the same final testing process, but it is based upon random sampling, and since these phones have more problems to begin with, the error rate is higher. However, as the model run goes on HTC will outsource refurb work to a contractor (who has cheaper labor).
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