How do I complain about poor in-store response to my issue (London, UK)

Hi
I went to the considerable trouble of going to Covent Garden with my phone today to the Genius Bar.
The phone has a severe fault in that it is impossible to hear in any sort of loud environment - it is clearly a hardware problem with the speaker. It is not reception-linked issue - people can hear me fine; if I use headphones, I can hear them perfectly. So a faulty speaker in a unit that is less than 1 year old.
Technically, because that phone was a replacement for another one in April 2011, I am out of warranty. But, the phone isn't really out of warranty as its been in use less than one year. I was surprised to have this reasoning used to justify not taking any action.
I was told nothing could be done unless I wanted to pay £119. I am not happy at all. Also, being told that a solution might be "to get a new phone on my contract" is not an answer either. I expected better than this from Apple.
In any event, how do I escalate this please?
BW
Hugh

The issue is as to whether I am out of warranty or the phone is out of warranty. Seems it's me!
The phone first went into action in late April 2011 and so is less than 1 year old. Do apple warranty, for 1 year, I will have A working iPhone or do they warrant that the specific iPhone in my pocket will work for one year?
While I can appreciate there must be rules, most people talk about a one year warranty on the phone. In any event, it's not clever of Apple - shouldn't it be reasonable to expect a phone to operate for at least 1 year? I can now not hear people on calls in a lot of situations where there is any appreciable amount of background noise and that is not acceptable in my book on a unit less than one year old.

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How do I complain about poor in-store response to my issue (London, UK)

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