Apple's Most Expensive iPhone Faces Unexpected Problem

What happened

Early buyers of Apple's new $1,999 iPhone Duo, its first foldable phone, reported bright horizontal lines on the inner screen. Apple acknowledged Monday that a small number of devices are affected and said customers can get replacements through AppleCare.

Confirmed

Global impact / market context

A screen fault on Apple's most expensive iPhone could hurt buyer confidence in a costly new design and raise warranty costs. It may also cool demand for foldables if shoppers fear the flexible display will fail after purchase.

Analyst inference

The Duo launched Friday to long lines and strong preorder demand, so this is an early reliability test for Apple's foldable push. An out-of-warranty inner-screen repair costs $999, nearly half the phone's starting price, which could deter budget-conscious buyers.

Analyst inference

What to watch

1. Apple said affected iPhone Duo owners should contact AppleCare, which means its paid support and repair service, for a replacement device. Confirmed
2. Watch whether Apple extends free repairs or changes AppleCare terms if more screen failures appear, since that would add costs for the company. Proposed
3. Track whether the reported hinge and display problems slow preorder demand or push buyers toward cheaper models, which would affect Apple's revenue. Analyst inference

Evidence

• gurufocus.com