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So I did a little more digging and was able to find out that watch with the black was manufactured around July 2015 and the silver was October 2015. So yes it seems like a design change for sure
 
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Apple logo on the back of the Apple watch is peeling off! As you can see even some letters are peeling off, it's like someone took a knife and scratch it all... You can really feel it with your fingers that it's been scratched... Quick search on google and i can see im not the only person with this problem, im surprised there was no thread here for this particular case.... Anyone is having this weird issue? Looks like it only happens on the sports space grey model...
Let us know and post a picture if possible.

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My Apple Watch Series 2 has same issue of plating peeling off badly. Only 11 months old and only used it may be 3 months tops on my wrist. Walked in to Genius Bar, they first flamed me for dropping it, then blamed me for rubbing it agains something and then told me they have never seen this damage. Techie told me it is cometic damage so, Apple warranty doesn't apply! Vow! They had no clue as to why it happened but, very quick to blame the customer and label it domestic damage when it is Cleary manufacturing defect. Last thing I would have expected from Apple! As you can clearly see in the photo, not only majority of the area has lost coating but, remains area is still black but it is getting jaggedly and in process of eliminating.
 
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My Apple Watch Series 2 has same issue of plating peeling off badly. Only 11 months old and only used it may be 3 months tops on my wrist. Walked in to Genius Bar, they first flamed me for dropping it, then blamed me for rubbing it agains something and then told me they have never seen this damage. Techie told me it is cometic damage so, Apple warranty doesn't apply! Vow! They had no clue as to why it happened but, very quick to blame the customer and label it domestic damage when it is Cleary manufacturing defect. Last thing I would have expected from Apple! As you can clearly see in the photo, not only majority of the area has lost coating but, remains area is still black but it is getting jaggedly and in process of eliminating.

When Is the last time you even cleaned your Apple Watch? Zooming in on it and looking at the back of it, I think your sweat is corrosive and had a reaction with the anodized aluminum. There was a similar thread to yours as well. It’s rare, but it happens. Or, It could be a defect with the anodization process. It’s important that you wipe the Apple Watch down with a damp microfiber cloth after anything fitness related.

https://forums.macrumors.com/threads/apple-watch-pitting-corrosion.2095311/
 
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When Is the last time you even cleaned your Apple Watch? Zooming in on it and looking at the back of it, I think your sweat is corrosive and had a reaction with the anodized aluminum. There was a similar thread to yours as well. It’s rare, but it happens. Or, It could be a defect with the anodization process. It’s important that you wipe the Apple Watch down with a damp microfiber cloth after anything fitness related.

https://forums.macrumors.com/threads/apple-watch-pitting-corrosion.2095311/
What you see after zooming in is the anodized coating getting delineated not, grime or sweat. All wrist watches are warn on the wrist and should be able withstand the sweat regardless of chemical composition of sweat. I have about dozen watches in my collection for past 40 years, and some of them are 60 years old and not one has this type of damage. BTW most of them didn't cost more than $ 150:))) Not a fitness buff! As I explained in earlier post, for the last 8 months since it was given to me as a gift, I have only put on my wrist 20-30 times. Stopped wearing wrist watches for past 15 years after I got my first iPhone in 2004. I do know something about coating and electro plating process. Regardless, if the coating is going to react with the sweat, it should have never been on $300 watch, period! And the last thing Apple Genius (!) should do not tell me he has never seen it before, and I am to be blamed for their manufacturing defect or poor choice of plating. After all it is less than a year old, mind you.
 
What you see after zooming in is the anodized coating getting delineated not, grime or sweat. All wrist watches are warn on the wrist and should be able withstand the sweat regardless of chemical composition of sweat.

I Understand the anodized coating is delaminating/separating from the Apple Watch, but that doesn’t mean that sweat can’t be corrosive that could have a reaction with anodization. It’s already Happened before with other Apple Watch owners, it’s rare, but it can happen. Or, as I stated before, it could be a defect with the anodized aluminum with the 7000 series. For the Record, I’m not speaking to any other mechanical watches, I’m strictly referring to the Apple Watch and 7000 series aluminum in this situation.


As I explained in earlier post, for the last 8 months since it was given to me as a gift

If was given to you as a gift, perhaps the person that owned it before you did not maintain it properly or had corrosive sweat, which is what you’re seeing with the reaction as it is now. Regardless, that picture depicts easily that that Apple Watch has not been cleaned at all. Which it should be cleaned regularly even if you don’t use it for fitness.

Regardless, if the coating is going to react with the sweat, it should have never been on $300 watch, period! And the last thing Apple Genius (!) should do not tell me he has never seen it before, and I am to be blamed for their manufacturing defect or poor choice of plating. After all it is less than a year old, mind you.

Price point isn’t really relative if a defect happens with the mass-produced Item like the Apple Watch. You can’t say that it can’t happen, because it Can and already has with others. We don’t know all the details behind that watch and what it’s been subjected to. Regardless, it very well could be a defect with the aluminum. I can’t attest to what the genius tech told you or insinuated. Perhaps make another appointment and have the situation reevaluated.
 
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And the last thing Apple Genius (!) should do not tell me he has never seen it before, and I am to be blamed for their manufacturing defect or poor choice of plating.

This is a pretty bold statement. You’re accusing the Apple Genius of lying to you by saying he’s never seen any WATCH showing this type of damage (it’s entirely possible he really has never seen this before your visit), then you’re suggesting Apple admitted to you this is a manufacturing defect and blaming you for the manufacturing defect.

Bottom line is, any Apple warranty is at Apple’s discretion. Take RP’s advice (which is always solid) and make another appointment (preferably at a different Apple store). But don’t go in with an attitude. I’ve had a few Apple devices I broke on accident (and I’m not saying you did this deliberately, as RP stated this very well could be a defect) and they’ve hooked me up with a refurb replacement or no money out of my pocket.

Just some friendly advice.
 
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When Is the last time you even cleaned your Apple Watch? Zooming in on it and looking at the back of it, I think your sweat is corrosive and had a reaction with the anodized aluminum. There was a similar thread to yours as well. It’s rare, but it happens. Or, It could be a defect with the anodization process. It’s important that you wipe the Apple Watch down with a damp microfiber cloth after anything fitness related.

https://forums.macrumors.com/threads/apple-watch-pitting-corrosion.2095311/
BTW the the marks you see on charging area glass after half dozen people touching in the store as they were trying to sell it to me that it is not their problem!
 
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