I'm 99% sure that Amazon only does this to a broken kindle that broke during the return period (30 days). They don't want people returning and rebuying (too much hassle for both sides). I found this out the first time my k3 broke. So, if this happens after 30 days, you get a refurb. Otherwise, what do they do with the broken ones? You can tell definaltly if it's a refurb by seeing if the recovery ports look "unclean". That means it's been soldered and desoldered. They use the recovery port to do a clean reinstall.
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