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Phone irreparable but still in contract

Tess12
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I have been having problems with my microphone for some time and have ended up using it on loudspeaker and talking directly into the microphone.  Now it isn't working at all and the i store says they don't replace them so it is irreparable.  They also  said that it was over a year old when I got it as they stopped making them in 2019.  Its an iphone 7.  Do I still have to pay it off if it can't be repaired as I obviously need to get another one now?

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MI5
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@Tess12 

Apple will fix it for you.

The store is just trying to sell you a new phone by telling you rubbish.

https://www.apple.com/uk/retail/geniusbar/

I have no affiliation whatsoever with O2 or any subsidiary companies. Comments posted are entirely of my own opinion. This is not Customer Service so we are unable to help with account specific issues.

Currently using:
Pixel 7a (O2 & Lyca), One Plus 6 (Sfr), iPhone 12 Pro Max (Vodafone)
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Tess12
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I went into the Store's genius bar today and they looked at my phone and said it was irreparable. 

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