Will Apple replace my iPhone if there is no water damage?

Hello, all!
Well, I bought a brand new iPhone 5 about a month ago, and everything had worked perfectly until about a week ago. All of a sudden, with both outgoing and incoming calls, I could barely hear the other person. They could hear me perfectly and normally, but I hear the other person as if they were very far away, and the voice quality is tinny, if that makes sense.
I can hear fine if I put the call on speaker, or if I put my headphones in and talk that way, both of which are fine as temporary fixes, but irritating to have to do all the time.
I called Apple, and they had me run through a few steps, all of which I had already tried (restarting the phone, resetting it, turning off LTE and turning it on again, putting in the headphones and taking them out repeatedly, etc). The woman I spoke to told me that once I was able to get to a computer, they'd have me update and restore the phone, and that if that doesn't work, they would replace it under the warranty, since it's brand new.
I haven't done the last step yet, but I feel like it's not a software problem.
If updating and restoring don't work, do you think Apple will replace it?
I haven't dropped it in water or dropped it anywhere, but I checked the sensor to be safe, and it's white as can be.
Is it likely they'll replace it for me, then? Because I absolutely cannot afford to get another one!
Thanks :)

If Apple determine that it is defective then they will replace it.
That is what a warranty is.

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