Apple AAPL shares fell 0.40% in premarket trading on Tuesday as the company acknowledged display problems affecting some of its newly launched foldable iPhone Duo devices and offered replacements to customers with faulty units.
The decline extended Monday’s losses, when Apple shares fell despite a broader market rally led by technology stocks.
The weakness also diverged from the wider market on Tuesday, with futures linked to all three major US indexes trading higher ahead of the opening bell.
Apple acknowledges display issues
Apple began shipping its first foldable smartphone last week amid reports of strong demand and limited supply.
However, early users have reported cracks and lines appearing on the inner display near the hinge, where the device folds. Some customers have also complained of a cracking sound when opening the phone.
Bloomberg reported that some users encountered display faults within hours of purchasing the device. Apple has acknowledged the problem but has not disclosed its cause or the number of units affected.
“We are aware of an issue impacting the inner display on a small number of iPhone Duo units,” Apple said in a statement. “If users experience issues with their iPhone Duo display, they should contact AppleCare for a replacement.”
The company has not provided further details about the reported defects or whether they are linked to the phone’s folding mechanism.
Screen durability has been a challenge for manufacturers entering the foldable smartphone market, with Samsung also encountering display-related problems during the early stages of its foldable-device launches.
Beyond hardware complaints, some iPhone Duo users have pointed out that several applications have yet to be optimised for the device’s folding screen. Apple has described app development for the new form factor as an ongoing process.
“The response to iPhone Duo from early users has been incredibly positive, and we are seeing exciting things from developers who are rapidly updating their apps to take advantage of its unique form factor,” an Apple representative said in a statement.
iPhone 18 sales show mixed regional performance
Separately, Apple’s latest iPhone sales have offered a more mixed picture than reports of lukewarm demand for the iPhone 18 Pro lineup might suggest.
Counterpoint Research said global sales of the iPhone 18 series were 3.1% higher than those of the iPhone 17 Pro series. China led the increase, with year-over-year sales growth of 29%.
However, sales declined 4% in the US and 27% in Japan, highlighting differences in demand across major markets.
Counterpoint said US consumers were not willing to upgrade from previous models with the new ones priced higher. In Japan, demand shrank as exchange rates amplified the price increases.
The latest figures provide some support for Apple’s broader smartphone business, but the launch of its first foldable device introduces a new test for the company.
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