Cell within warranty & they refuse to fix software

I took out cell phone contract last year August with Telkom. On the 21st of July, the cell switch off automatically and refused to switch on again. We took the phone to the Eastgate Branch, as it is still within the warranty and was told that is deemed out of warranty. My *** was reffered to Micheal,the regional manager and he refused to fix the software as there is a TINY chip on the back of the cell. What does a chip have to do with the software? This does not make sense, as the software can be repaired without opening the actual device. I require Telkom to act professionally and repair the device as per the warranty.