And yes, Apple's warranty states that you could get a new or refurbished device. If you don't like that policy, you need to take it back to the place you bought it.
Wether you like it or not thats their policy and mostly every company out there does the same.
They replace it with a refurb but Apples refurbs are top notch. You also still continue to have a full 1 year warranty on it from the original purchase date.