Apple has acknowledged an inner-display defect affecting a small number of its new $1,999 iPhone Duo foldables after customers reported hearing a crunch while unfolding the device before cracks, lines and other display failures appeared along the crease. Apple is replacing affected phones and investigating the problem.

iFixit believes a failing hinge component may be pressing into and cracking the display rather than the panel itself being defective. Bloomberg reports: Reports of the problem first surfaced on Reddit and other social media sites. Bloomberg News has since independently verified the issue with more than half a dozen customers, who provided photos showing damage to their devices or evidence of their support conversations with Apple.…