Why don't apple repair iPod screen instead of replacing the whole unit?

I dropped my iPod a while back now and while it was initially superficial damage it's got to the point where 75% of the screen is unreadable and the touchscreen is completely broken.
Why do apple charge £100+ to replace the whole unit when there are other services that can repair the screen for less?

All any of us here can say is "because that's how they decided to handle it". It's not uncommon for manufacturers of small electronic devices to just replace them for a flat fee regardless of the problem, though.
Regards.

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