Apple Care Warranty - Iphone 3Gs 16g discontinued

My warranty is ending in a few weeks and I never used it yet.. my phone is actually getting tired, Home button not always working, weird sport in the screen, battery draining really fast..
I just read that Apple Store don't have any Iphone 3gs 16gig anymore to sell at their stores.
I was just wondering, if I get there to use my warranty and get a new Iphone, will they get me a refurbished 3gs 16g and a Iphone 4 ?
In the AppleCare contract, do they have the right to replace my Iphone with a refurbished one ?
Thanks

A refurbished iPhone from apple is pretty much new. The glass will be new and the back casing will be new so it looks new. The serial number will be new & since the SIM card try has the serial number on it the SIM card tray will be new too.
I've had three refurbished iPhones for warranty issues and they have all appeared to look new and have no issues out of the box or issues related to them being refurbished.

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