I think you should contact Apple again. I called Apple directly this morning and they waived off $550 of replacement fee. Here's my story:
I sent in my iPhone 6 after I my iPhone cannot be powered on after switching it off the previous night. After 2 days, a.lab sent me an email with a quotation of $550 for the replacement handset as they claimed that my LCI has been triggered. To my surprise, I've never spill any liquid over my phone nor I've used it under the rain. After some heated exchange of emails, I decided to call Apple for help.
This hardware specialist that I've talked to also found the situation weird so after checking my account, he told me he will do everything he can to waive off the replacement fee as he mentioned that I'm a loyal Apple fan since I've bought every iPhones and nearly all category of their products. LOL! He told me not to worry and he will settle everything for me.
Soon after, he called me back and told me that he has spoken to the manager of a.lab. He was able to waive off the replacement fee and even got him to prepare a replacement phone for me (even though I've already told him I already have a spare phone). He kept apologizing as my phone was down like as if it was his fault and kept asking if I was happy or satisfied with the outcome.
I've always heard Apple has world class customer service and after today's incident, I have never been more certain about. My advice to you is to call Apple again and slowly explain your situation to them. They are not a unreasonable bunch unlike authorized service providers. I believe you will find a solution soon.
Hey man, i need to thank you for posting this. My mom's iphone 6+'s warranty expired on 24/Jan this year, but we noticed that the screen kept shutting off by its own, so we brought it down to ALAB. A nice guy advised us to contact Apple directly to see if they'll be able to help.
Sure enough, Apple told me they'll give me a replacement unit, and I went back to ALAB. But HECK they quoted me the LCI damage story, and even forgot to replace my screws at the bottom of the iPhone. They asked my mom to pay $600 for a replacement unit instead. I'm not an IT person, but because i saw your post, I went back home and checked ALL the LCIs on the phone...and NONE of the bloody things were triggered.
So I emailed Apple, and after escalating things to their Product Specialist...they finally gave the green light for me to go to ALAB again to exchange a new unit.
Moral of the story? Every single bloody time they tell you Liquid Damage, take out your torch and shine into it and CHECK. Also, don't bother wasting your time at ALAB. It SUCKS.