I want to exchange my iPhone 5 for a new one, but I bought it online from the factory (unlocked), how do I do this? Can I go to a retail store? or Should I send it back by mail?

Apple does not have an exchange for new model program. You can contact your Apple store and see if there are any reuse/recycle programs they are participating in. Your best bet is to sell the current iPhone and put the money towards a new one.

Did you happen to buy it from the Apple online store in the US? If you did you would have to return to the US or send it to someone in the US to return it. The $49 is to replace a broken iPhone, is yours broken? They still have more than enough iPhone 5 service replacements.

The program is for replacement since Apple does not repair iDevices...you take your non-working or damaged iPhone to an Apple store genius bar, or send to Apple service, and they provide a refurbished unit as a replacement, for a fee, of course. You will have to talk with Apple to see if you get all components or just the iPhone replaced.

With AppleCare+ you can have two out-of-warranty replacements for a cost of $49 each.

They will not do a replacement for the scratches which are normal wear and tear but if your home button is failing you can replace it under warranty.

You will receive a service replacement unit in a plain box. It may be new it more likely will be refurbished. It will not have any accessories. Normal wear and tear is not covered under any warranty but you can buy replacement accessories at the store while you are there.

You can either make an appointment at your nearest US Apple Store or return it in the mail from a US mailing address.