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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.

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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.

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Please do try @Oliver, and comment when you have. I strongly believe otherwise. –  Emil Mar 7 '13 at 21:20
    
@Emil FWIW my source is personal experiencing working as a Genius for 3 years, so I remember policies but am also familiar with how often they can and do change. An old colleague of mine confirmed this about 3 months ago though when my sister had a liquid damaged iPhone with surely a triggered internal LSI. I could very well be wrong though, 3 months is a long time for a policy to stay intact around Apple retail ;) –  Mr Rabbit Mar 7 '13 at 21:56

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