If your original device breaks within its warranty period, then the warranty is honored. If they fix it, then you usually have an extra grace period (30-120 days) or the rest of the original warranty period. If they replace it with a new device, the original warranty is usually considered fulfilled since your device broke and they honored it. Now you have a new device with a new warranty. The new warranty will be less than the one year, I'm sure. Probably the same as the grace period they would otherwise extend you. Nothing really unethical about this. They warranty devices, not purchase dates. EDIT: Warranties aren't insurance. If you want insurance, go buy it. That said, I really do sympathize with your situation. I would be pissed as well. In the end though, I think their policy is reasonable.