Will Apple replace my water damaged iPhone for a refurbished one?

I have an iPhone 4s that fell into a swimming pool recently. The phone hasn't been turning on since then.
I live in India, but the phone is a gift from my friend who lives in Hong Kong. Will Apple be able to exchange my phone for a refurbished one if I send it to Hong Kong?
I have read on forums that Apple will replace the phone for 199$, but I want to be sure about this before sending it to my friend in Hong Kong. Any help will be appreciated!

From this very website (drill down from the "Support" tab at the top of this screen):
Out-of-Warranty Service     If you own an iPhone that is ineligible for warranty service but is eligible for Out-of-Warranty (OOW) Service, Apple will service your iPhone for the Out-of-Warranty Service fee listed below.    
iPhone model
Out-of-Warranty Service
iPhone 5s, iPhone 5c,
                 iPhone 5
$269
iPhone 4S
$199
iPhone 4, iPhone 3GS,
                 iPhone 3G, Original iPhone
$149
A $6.95 shipping fee will be added if service is arranged through Apple and requires shipping. All fees are in U.S. dollars and are subject to local tax.
When setting up out-of-warranty service, Apple will request credit card pre-authorization for the maximum service fee listed above.  This amount will be deducted from your credit limit. The final service fee we charge will be determined during testing and may be less than the service fee listed above.
Certain damage is ineligible for out-of-warranty service, including catastrophic damage, such as the device separating into multiple pieces, and inoperability caused by unauthorized modifications.  However, an iPhone that has failed due to contact with liquid may be eligible for out-of-warranty service.
Apple reserves the right to determine whether or not your iPhone is eligible for Out-of-Warranty service. iPhones that are repaired or replaced have a 90-day limited hardware warranty or assume the remainder of your standard warranty or AppleCare service contract coverage, whichever is longer. Please see Apple's Repair Terms And Conditions for further details.
You can select the appropriate country for local prices.

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