Iphone 4s not working after ios update 6.1.3

I have an iphone 4s boxed, brandnew and unopened for a year not until March 2013, for a couple of days i have used it, worked excellent but after i have unlocked it through at&t and updated it to IOS 6.1.3 it went to re-activation mode again. Tried several times to activate it but no succeess. I went to an apple store to discuss the problem of the update and consequently the result it brought to my iphone4s but denied a replacement because it was passed the warranty period. I was offered a replacement (for a fee) of $200 but i refused since i believe i havent enjoyed the iphone for years, has not even dropped, water-damaged nor scratched. The manager on duty (Mary, Fairview Mall, Ontario) insisted that my iphone 4s has a growing software problem already and i just dont know of... I reiterated to her that the unit was working as brandnew just like many of my apple products i have. I havent called the apple support telephone support though. What should i do now? Please help guys. I cannot take it paying another $200 for an iphone that was practically brandnew and went useless after the update. I have a record of the at&t authorized unlocking request. Should i escalate the appeal to where? Please help.. Thanks a lot guys.

The fact that you chose to leave the device in the box for a year (a rather unintelligent decision) has no bearing on the warranty. Warranty starts from the date of the original purchase.
You can try basic troubleshooting from the User's Guide which is reset, restart, restore (first from backup then as new).

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