Fine M-Tec Shares Fall 15.70% Amid Complaints of iPhone Duo Screen Damage

Key Facts

Fine M-Tec shares fell 15.70% in the October 26 session, closing at 9,400 won on the KOSDAQ market, down 1,750 won from the previous session, according to ChosunBiz. The decline came amid reports of complaints about damage to the screens of the iPhone Duo foldable phone, which became available on October 23 after preorders opened on October 16, according to Apple’s announcement. SBS reported that buyers in the United States, Australia and other regions had reported cracks or bright lines in the middle of the inner display. The report said some of these marks appeared after the device had been opened and closed a few times. The cause of the damage and the number of affected devices had not been confirmed when ChosunBiz published its report, so the stock’s decline coincided with the complaints without establishing that a defect in Fine M-Tec components caused them.

ChosunBiz’s report included an account from an Australian buyer who said the phone’s screen cracked after six hours, before the device had been opened 20 times. 9to5Mac’s coverage said reports published through October 25 had identified about ten separate cases of damaged inner displays. Those reports described a pattern of cracks along the hinge line, alongside a horizontal cluster of brightly lit white pixels. Some buyers said the screen failed while they were setting up the phone for the first time. A number of affected customers were able to exchange their devices directly at an Apple Store, while some buyers through wireless carriers faced difficulties because of a shortage of replacement stock, the report said.

Fine M-Tec responded to the reports by saying that quality problems reported in some products were not attributable to defects in the components it supplied. It added that linking a problem in a finished product to a specific component first required, in its words, "objective and technical verification." The company’s statement did not name Apple or iPhone Duo directly, according to ChosunBiz. It also said it could consider civil and criminal legal action against anyone who attributed defects to its components without an objective basis or published unverified information. The response puts responsibility for identifying the source of the damage at the center of the dispute, while user accounts and the company’s statement continue to present differing positions without a publicly announced technical determination.

The phone’s domestic price in South Korea started at 3.29 million won, according to ChosunBiz. When announcing the device, Apple said its hinge contained more than 100 components to control opening and closing and support the center of the display so it would remain flat when the phone was open. The company also described the inner display as using a custom polymer nanocoating layer with hardness up to 40% higher than other materials used in the industry, with high-strength glass above and below the foldable display panel. These specifications provide context for the early damage complaints but do not, on their own, establish the cause of the cases reported by buyers. Before launch, AppleCare’s price list listed the cover layer at $19, according to an Associated Press report.

On the manufacturer’s position, ChosunBiz reported that Apple had not acknowledged the screen damage cases raised by some users as an official product defect. The Associated Press had reported before launch that Apple had not published online information on how to care for the iPhone Duo and had not responded to the agency’s question about its plans on the matter. When ChosunBiz published its report, the actual cause of the damage and the number of affected products remained unconfirmed. The issue therefore remained between users’ complaints, Fine M-Tec’s denial that they were linked to a defect in the components it supplied, and Apple’s position on whether the cases constituted an official defect. The available account gave no later date for an investigation or official announcement to resolve those points.