iPhone 5s gyroscope not working

I bought my iPhone 5s on November 2013, its not even two years old and the gyroscope is not functioning. I found out its not working as screen rotation does not work, the compass does not calibrate (stays still) and my phone does not count the steps I take any more. This all started happening after i updated to ios 8.4. I contacted apple support about this issue and tried every troubleshooting step (resetting iPhone, restoring the iPhone, orientation lock, restarting) however none of those worked. In the end they concluded it was a hardware issue, however because it has international warranty it only lasts one year and it costs half the price of a brand new iPhone to fix it. Is anyone experiencing the same problem? and is there anyway to fix it?