Post-warranty period defect in iPhone

I bought my iPhone 4S in March 2011. There was some defect in the phone recently. I was not able to hear the ring tone of incoming calls, listen to music etc. I could hear the sounds with the headphone on. I went to the Apple dealer/ franchisee in Bangalore, India. They told me that it was a defect in the hardware and they were going to replace my phone with a new one and they did it promptly. I was lucky that the problem surfaced during warranty period.
But what if it had happened in the post-warranty period? I would like to know from others based on past history and practices: Does Apple get such and similar defects repaired (for a charge) at their service centres or is that the end of that phone/tablet and one needs to buy a new one? Not sure how it works and a bit concerned. Would like some information in this regard. Thanks
I love my iPhone and iPad!

Post wrranty period you can take it into a service center and (wth exceptions) get the whole unit replaced with a refurbished unit for a flat fee.
If a problem arises with the repair they just did that is warrantied for 90 days.
Repair Pricing section - http://www.apple.com/support/iphone/service/faq/
iPhone model     Out-of-Warranty Service
iPhone 5    $229
iPhone 4S     $199
iPhone 4, iPhone 3GS, iPhone 3G, Original iPhone     $149

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