Can I cancel an orange pay monthly contract after 2 months?

I took out a 2year contract with orange for an iphone 5 in april 2013, 2 months in & the phone is faulty & wnt even turn on. Iv taken it to an iStores where they've said the hardware is faulty. After a lengthy phonecall to orange they put me thru to apple where they are happy to replace the handset only if I pay a holdin sum of £600 for the vallue of the phone. Once theyv rec'd my faulty handset the money is refunded to me. This seems nonsense… Am I within my rights to cancel my contract. Cnt return the phone to an apple store as the nearest one us over 60 miles away. Would greatly appreciate some help/advice

You can cancel it my dad did like 2 months into a contract but i think you have a pay to finish it early

It should be under warranty if you took care of it that is, if they can see its smashed up, that will void your warranty