Well, actually, the few times that i had to do this (with defective iPhone 5), i got a brand new unit because refurb was not avail early in the cycle.
As for exchanging to get higher storage or features, of course...i thought that was obvious.![]()
well actually, that's still a repair under warranty. if they'd had refurbs, they wouldn't have considered giving you a new one.
as it is, the repair for that specific defect would be exactly the same as for processing a refurb to go into white box stock - replacing the outside case... and the time taken to do that? who knows, it's not an in-store job. easier to give you a replacement to make you happy than say come back next week.