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Just over two weeks after its release, Apple's first foldable smartphone, the iPhone Duo, is facing downward price pressure on the secondhand market. Buyback estimates for unopened domestic units of the base model, which launched at 3.29 million won, have fallen to around 2.4 million won, while in the United States, the maximum buyback price for some models has been set at more than 38% below their launch price. Concerns are growing that the "resale value retention" long considered one of the iPhone's strengths could be undermined, as reports of cracks in the inner display emerged shortly after launch and screen repairs cost as much as 1.65 million won, heightening buyers' concerns.

On November 10, U.S. used smartphone price comparison platform SellCell reported that the maximum buyback price for the 2TB iPhone Duo in Mint condition was $1,971. That is $1,228, or 38.4%, below its $3,199 launch price. In other words, a substantial gap had emerged between the launch price and secondhand buyback prices just about two weeks after the phone went on sale on October 23.

The situation is similar for the base 256GB model. The maximum buyback price for a device in Mint condition was $1,560, 22.0% below its $1,999 launch price. A device in Good condition, showing signs of use, was valued at $1,315, 34.2% below its launch price, while a used device in Poor condition was valued at $1,107, 44.6% below. Buyback prices were even lower for devices with defects such as a cracked screen.

As of November 5, used-phone buyer Retems was offering 2,388,000 to 2,437,000 won for unopened, unlocked 256GB units. That is up to 902,000 won below the launch price. A device that commanded a premium amid an initial shortage is now being valued by secondhand buyers hundreds of thousands of won below its launch price, just over two weeks after release.

A bright line appears as the screen cracks along the fold

‘Crackgate’ controversy over screen cracks

Apple officially acknowledges the issue

Cause of defect and number of affected devices undisclosed

Concerns about resale value are rooted in the controversy over display durability that has continued since shortly after launch. Since the iPhone Duo went on sale on October 23, consumers in South Korea, the United States, Australia, China and elsewhere have reported that the inner screen cracked along the fold or developed bright lines. Some users claimed that they encountered screen problems just hours after purchasing the device. Online, the term "Crackgate" emerged, combining "crack," referring to the screen fractures, and "gate," a suffix used for major controversies.

As the controversy spread, Apple officially acknowledged the problem. According to Reuters, Apple said on October 26 that it was aware of issues affecting the inner displays of some iPhone Duo units, and that customers experiencing problems could have their devices replaced through AppleCare. However, Apple did not disclose the specific cause of the defects or the number of affected devices.

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The iPhone Duo's high repair costs could also weigh on the secondhand market. Apple lists the out-of-warranty repair cost for the iPhone Duo's inner display at $999 in the United States and 1,649,000 won in South Korea. The latter is about half the 3.29 million won launch price of the domestic base model. The cost is also high compared with competing products. According to U.S. technology publication Android Authority, repairs to the inner screen of the Galaxy Z Fold8 in the United States cost between $419 and $579, depending on the scope of the repair. The iPhone Duo's $999 repair cost is considerably higher.

The high repair costs of the iPhone Duo could also weigh on the secondhand market. Apple lists the out-of-warranty repair cost for the iPhone Duo's inner display at $999 in the United States and 1,649,000 won in South Korea. Xinhua News Agency-Yonhap News

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Of course, the actual repair costs consumers pay may vary depending on whether they have AppleCare+ and other factors. The concern is that these costs could also affect the residual value of used devices. Secondhand buyers need to purchase damaged devices, repair them and resell them, but if repair costs are too high, it becomes difficult to make a profit. As a result, they have an incentive to set buyback prices conservatively, taking into account both the risk of defects and the cost of repairs.

The cause of the display defect has yet to be clearly identified. Electronics repair specialist iFixit said after disassembling the iPhone Duo that stress could be concentrated near the inner display and the central support structure of the hinge. Its analysis suggests that the display could be damaged if the structure does not leave enough clearance from the screen as it folds.

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Some industry observers say the iPhone Duo's secondhand pricing should be viewed not only in light of early defects in an individual product, but also in the context of the structural characteristics of the foldable smartphone market. According to a depreciation analysis of foldable smartphones published by SellCell in October last year, the average resale value of foldable devices fell by 62.3% six months after launch and 71.1% after 18 months. By comparison, depreciation rates for conventional flagship smartphones were 49.8% and 60.7%, respectively, over the same periods. This shows that foldable smartphones tend to lose resale value faster than premium smartphones with a conventional bar design.

Apple acknowledged a screen defect in its first foldable smartphone, the iPhone Duo, and said it would replace affected devices free of charge. Yonhap News Agency.

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High depreciation is not unique to Apple: Samsung's Galaxy Z Fold and Flip series also saw an average value decline of 63.7% in the first six months after launch. The complex design typical of foldable phones, repair costs and relatively limited demand for used devices are cited as factors affecting secondhand prices. However, the iPhone Duo is drawing particular attention because it is Apple's first foldable device.

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Apple has long promoted strong brand loyalty and high residual values as strengths in the conventional premium smartphone market. But with its first foldable model priced well above 3 million won, early display defects, high repair costs and downward pressure on secondhand buyback prices have emerged at the same time, drawing attention to whether it can maintain the resale value strength of other iPhones.