Yes, unless you luck out and they give you a new one within the first 14 days...
Apple will fix it for $200 (4GB) or $250 (8GB). Plus $30 for a loaner, if you need one.
They simply charge their cost for a new phone, for any out of warranty repairs.
That way, they can either just give you a replacement, or pocket the extra money if it costs less.
Gotta love their businesss model.