iPhone headset controls not working

My new iPhone 5S cannot be controlled with the apple earbuds headset (pause, prev, next, volume controls). At first I though the headset was defective but I just now tested with a new headset and it still doesn't work. There seems to be a loose connection with the headphone jack as slightly twisting it causes the connection to cut out. Anyone else having a similar issue? Looks like its going back for a replacement.