If it's an iphone they have to take it out of the box to register and activate it. It's a deal they have with AT&T so people will sign their life away for two years. After they activate it, they give it to you to play with and do what you wish. The adapter and other items are already in the box and they throw that in a bag. So it's very likey he was playing around with the phone and it dropped. Doesn't excuse him for being a dumbass. Also, there is no insurance offered for the iphone. Atleast not anywhere where I have gone. There is applecare protection, but they don't cover drops, cracked screens, etc. Like I said, if you have a cracked screen, there are places where you can get a new screen for 20-40 bucks and it's SUPER easy to replace yourself.

Actually, if the OP purchased the phone with a credit card, he could be eligible for the 90 day warranty on ANYTHING he buys, and the coverage includes 100% coverage for loss, theft and breakage. Or at least that's how it works with some credit cards in Canada.

I don't think we have anything like that here in the US. That I'm aware of. I could be wrong. But if that were the case everyone would be returning things left and right. And I'm sure the companies can decide whether or not to follow through with this. Otherwise that wouldn't be fair to the companies to give 100% money back to dumbasses who break their phones. People would just go around breaking their stuff for new stuff or money back. It wouldn't fly.

Sprint actually has insurance for iPhones it's only like 5 bucks a month and they'll replace it for 200 which is better than the 600 it would cost to buy a new one outright.