In all honesty, the components of a $529.99 phone cost much less, closer to about 100, maybe less. If they get a returned $529.99 phone back, reuse the parts in another phone, then sell the "refurbished" phone back to Verizon for $300, they still make a profit. The only time they would lose money would be if there was nothing usable in the phone, which is very unlikely.
Seriously people, do you think anything you buy from any store actually costs near what you paid to make? A $1000 television costs only about $100 to make, then with markups between the manufacturer, distributor, seller, gets closer, but still not near the $1000 you pay for it. The same goes for your mobile phones, cars, toilet paper, food. It's just the way business works today.
