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Apple typically has a very generous 14 day return period with no restocking fee. Currently, it’s even longer as they have a extended holiday return window.

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Probably a really silly question: but can they sell the product as new thereafter?

No, a lot of these returned devices end up in Apple’s refurbished store, or are used as replacement devices for warranty claims.

The probably don't - https://www.apple.com/shop/refurbished

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