Is my iPod Touch 4g Water Damaged?

I've had my iPod for about 3 months now and everything was all good till one morning I ended up dropping my iPod into the sink. This wasn't the first time I dropped the iPod into water but this time when I pulled it out of the sink, I immediately started seeing some problems. The iPod wouldn't turn on for a while, the volume wouldn't go up and the screen started to malfunction. I was very confused so I went on the internet to find out what was going on and I figured that I must've gotten the thing waterdamaged (iPods don't like the water) and the best thing to for me to do was to turn it off (so it doesn't short circuit) and bury it in a bowl of rice which would suck out all of the water.

This was all three days ago and during each day except yesterday, I checked up on the iPod. The first day after leaving it in the rice, everything was okay but my WiFi connection just was not working and neither was the volume so I put it back into the rice. Yesterday I didn't bother it but today I realized that my LCD screen was dim as hell and even when I went to settings to try to fix the lighting, the screen was still very dark. Right now that is the only problem; the screen. The WiFi connection works and so does the volume now. I'm even more confused because the litmus paper in the iPod (the water exposure indicator) is still white and its supposed to turn pink if its been exposed to too much water. Because of this, I doubt that its been damaged by water.

I'm about to set up an appointment to the Genius Bar at the Apple Store if this continue to be a problem. Anybody out there knows whats going on with my iPod? Is it waterdamaged or is it something else?
Don't all iPods come with a 1 year warranty?


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