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Early on Amazon was replacing broken Kindle 1s for free. I know because my first Kindle 1 (purchased the first day it was available) stopped working about 2-1/2 months later. It was dropped a couple of weeks before it stopped working so I honestly don't know if the drop contributed to the failure.
Sometime last spring or summer Amazon stopped the free replacement and started charging. $180 is probably what it costs Amazon to replace the screen so you need to decide if it's worth it to you.
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