Will Apple offer a discounted replacement for a water damaged iPhone 4S outside of warranty? Will Apple offer a discounted replacement for a water damaged iPhone 4S outside of warranty? The water indicators on the outside of the phone have not gone off, but the one inside on the logic board may have.
They will.  I believe, but don't quote me, replacement cost will be $99.  Apple will only deny service if there is catastrophic damage (imagine a phone in 3 pieces), is a counterfeit device or if it is missing parts.  If it is only liquid damage then they will likely offer replacement at that discounted cost.