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I guess it may depend on what you're doing with the software, the phones might have a self-destruct button or something...

(I guess some companies want to do that with lost phones)

I assume they mean, if you brick the phone, the warranty is void. If you reflash your phone but then the hardware breaks, the warranty is still valid.

Whether you void the warranty or not may depend on the laws concerning warranties in your country/state.

I guess we should read that as "we would like to void your warranty" then :)