Apple has changed its policy for handling water damage to iPods. Boy Genius Report published an internal Apple document that specifies the change. According to that document, employees dealing with broken iPods that indicate exposure to moisture must examine the device for other damage, rather than directly ruling the issue a result of exposure to liquid.
iPods come equipped with Liquid Contact Indicators (LCIs) that are in the headphone jack. If that indicator is exposed to moisture, it activates, and an Apple technician examining the device would be alerted that it had been thus exposed. Generally speaking, exposure to liquid is a user issue, and these rulings affected warranty claims and other repairs.
Under the change, “if the LCI inside the headphone jack has been damaged, the iPod must be inspected for additional signs of liquid damage.”
There’s no indication in the document as to why Apple has made this adjustment in policy has been made.