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If it is on contract, she will now need a very similar piece of equipment in order to take advantage of the specific benefits of the 12 to 36 month contract she has signed into. A standard, cheap, calls and texts type phone won't do. In addition, there will almost certainly be a charge for a replacement SIM card. Perhaps accident insurance is included in the contract, or maybe she has taken it out separately.
There is a charge though and you can't use your apps and the internet without suitable equipment. In fact an iPhone is more or less useless without apps and internet access. I suppose it might make phone calls.
In a contract there is probably a clause about the phone still belonging to the provider until the contract expires its minimum term. Not a good thing if said phone is down a drain.