iPhone 'out of warrenty' after only 3 months

<p>I received my new iPhone from Telkom Mobile in June. At the beginning of August, it started giving problems. It would restart when plugged into and out of the charger, and on 02 August it stopped charging or working altogether. I took it to the Telkom Store at the Highveld Mall on Wednesday 03 August. I received it back on16/08/2016, with notes that it is beyond economical repair due to an electrical component damage, and is out of waranty. How is a brand new phone not covered by the waranty? </p>