If you purchased it via your credit card it could be covered under your credit card insurance. My globalplus card took care of an iPhone 5 replacement when my wife left it on the roof of a car at 2 weeks old.
Certainly any problems with a device, whether caused by the user or not, or whether purchased through a Telco or not, should go through AppleCare if the device is within the AppleCare period. At the very least they can give you advice on where to go, the costs involved, and sometimes they might even help you out for little to no cost....that tends to be a once in a lifetime kind of thing though, and I have used up mine on something that I would have preferred to replace myself :)
I am amazed how some people assume physical damage might be covered under warranty.
I have a work colleague who's son dropped her note2 on the edge and the screen smashed and expected it to be repaired under warranty, I explained that it was not a factory fault there fore no warranty would apply, although I have seen quite a few note2's with shattered screens lately!
If this was me, I would be sending it back to apple with $400 of my hard earned and getting a refurb, you never know what other damage was possibly done when it dropped.
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