I think Samsung Galaxy are made to be like that they are not as loud on hand free as any other phones............I am using Samsung Galaxy Note 2 and its the same the volume on hand free is low...........
Your second problem might be some fault on your hand set get some phone shop to have a look at it.......regarding software updates you can check your self if there is any software updates by going in to Settings,More, About Device, and click on Software Update..........If there are any it will update it self..............
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