"It cracked when folded, shares plunged": What happened to Apple's KRW 3.29 million first foldable phone?

'Crackgate' Controversy Erupts Shortly After Launch
Screen Damage Sends Domestic Component Supplier's Shares Down 15.7%

Apple's first foldable smartphone, the iPhone Duo, priced at KRW 3.29 million, was embroiled in controversy over screen damage shortly after its launch. Consumers have repeatedly claimed that the foldable screen cracked just hours after they bought the device, prompting some online to call the issue "Crackgate." The controversy has also spread to a domestic component supplier. After shares of Fine M-Tec, known as a supplier of the iPhone Duo's hinge, plunged more than 15% in a single day, the company moved to quell concerns, saying the issue was unrelated to defects in its components.

The iPhone Duo, Apple’s foldable smartphone, is on display at Apple Myeongdong in Jung-gu, Seoul, on the 23rd, its release date. Yonhap News Agency

On October 26 (local time), foreign media outlets including Bloomberg and Reuters reported a growing number of consumer complaints in the United States, Australia and elsewhere about cracks or white lines appearing on the internal displays of iPhone Duo devices, which launched on October 23. One case shared by an Australian buyer in particular fueled the controversy. The buyer claimed the screen was damaged about six hours after purchasing the device. "I had unfolded it fewer than 20 times. When I opened the screen to show it to a friend, I felt something catch inside the hinge," the buyer said. "Then I heard a cracking sound, and the screen broke."

A similar account was posted on Reddit, a U.S. social media platform. Posts describing cracks or bright lines appearing at the screen's center fold were shared, and some users began calling it "Crackgate." Social media

Similar accounts have also appeared on Reddit, a U.S. social media platform. Posts reporting cracks or bright lines appearing along the screen's central fold have been shared, and some users have begun calling it "Crackgate." Damage reports have centered on the fold in the middle of the screen. This has prompted suspicions that there may be a problem not only with the display's durability but also with the hinge mechanism that controls the screen as it folds and unfolds.

Screen crack reports surge just three days after launch... 'Crackgate' controversy grows

When Apple unveiled the iPhone Duo last September, it emphasized that the hinge, made up of more than 100 precision components, precisely controls the screen's movement and supports its center. Electronics repair specialist iFixit suggested in a teardown analysis that the hinge's central support and surrounding components may have exerted pressure on the screen. However, further technical verification is needed to determine whether the actual cause of the damage was a design flaw or a manufacturing defect affecting some devices.

Apple emphasized when unveiling the iPhone Duo last September that its hinge, made up of more than 100 precision components, precisely controls the screen's movement and supports its center. YouTube channel JerryRigEverything...

Bloomberg reported that it had reviewed photos of damaged devices and records of customers' consultations with Apple for more than six buyers. However, the total number of affected devices and the precise cause of the defect have not yet been confirmed.

The screen damage controversy also affected South Korea's stock market. According to the Korea Exchange, Fine M-Tec closed at KRW 9,400 on the KOSDAQ market on October 26, down KRW 1,750 (15.70%) from the previous trading day. Fine M-Tec manufactures internal hinges and metal plates that support foldable smartphone displays, and is known as a supplier of components for the iPhone Duo. The mention of the hinge mechanism as a possible cause of the iPhone Duo's screen damage is believed to have dampened investor sentiment toward component suppliers.

Fine M-Tec posted an official statement on its website that day, saying its components were not defective. "The quality issue reportedly affecting some products recently is not attributable to defects in the quality of components supplied by our company," it said. "Any direct link between individual issues with finished products and defects in specific components must be preceded by objective and technical verification." The company added that it would consider civil and criminal legal action against anyone who identifies its components as the cause of the defects without objective evidence or spreads unverified information.

Apple acknowledges problems with some devices

Apple has also issued an official statement regarding reports of screen damage. In a statement provided to foreign media, the company said it was aware of an issue affecting the internal displays of some iPhone Duo devices and that customers experiencing the problem could have their devices replaced through AppleCare. However, Apple only said that a small number of devices were affected and did not explain the specific cause of the screen damage or whether it would make design changes in the future. Some buyers have reportedly exchanged their devices for new ones at Apple Stores, while others are waiting for replacements because of a shortage of initial inventory.

Apple has also issued an official statement on the screen damage issue. In a statement sent to foreign media, Apple said it was aware of an issue affecting the internal displays of some iPhone Duo devices and that customers experiencing the problem could exchange their devices through AppleCare. Yonhap News.

The industry is watching to see how the controversy will affect Apple's entry into the foldable smartphone market. Unlike conventional smartphones, foldable phones must withstand repeated folding, making the durability of their displays and hinges a key competitive advantage.

Consumer expectations for initial product quality are also high, particularly because the iPhone Duo is a premium product with a domestic retail price starting at KRW 3.29 million. Apple has acknowledged problems with some devices and announced a replacement policy. Whether the incident will remain limited to a small number of early defects or grow into broader concerns about structural durability is expected to depend on the findings of further investigations.

This content was produced with the assistance of AI translation services.