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I had the issue where there entire screen would distort and flicker. The odd thing with mine is that it only occurred within the first couple hours of operation. About 15 minutes after activating the phone, a line appeared at the top of the screen and the entire screen would shake and become fuzzy. It would do this frequently and wasn't tied to any app.

I reported the problem the Apple and they had me do a restore. That didn't fix the problem so, I was all set to demand a replacement.

The odd thing is that over the first few hours, the screen flicker began occurring with less and less frequency, and after about a day it stopped entirely. I have now had the phone for two weeks and have never seen a recurrence of the flicker. I have even tried to do things, such as using it for long periods of heavy use, etc. in order to try to replicate/induce the flickering. I haven't been able to.

Has anyone else had the flicker problem right out of the box but then have it go away after a little bit of use?
 
I've had my phone for 2 weeks now and I just experienced the line of distortion across the screen when getting an app through the app store. Went away afterwards and hasn't returned.

Came here to investigate if others had this issue and sure enough. Not a big deal and as others have pointed out it may be a software glitch and be fixable with an iOS update. We be keeping a close eye on this as well.
 
Senior advisor says it's a hardware issue, LCD issue to be specific. said they will send an express replacement (need to put hold on credit card, which they will refund once they receive the defective phone). so apparently, it's a hardware issue.

btw, they replacements that get sent out are new units.
 
Screen shot fix: short term or will it last?

I also had this problem when in the App Store log in or iTunes. But when I took a screen shot, it went back to normal. Since then I haven't gotten it to repeat what it was doing. So should I be worried and send it in or keep it, knowing its not bugging out ATM? I've had multiple iPad have different bugs with each replacement. So I'm hesitant to replace it when it's such a small defect. Everything else is working just fine. :)
 
I also experienced these lines at the keyboard at the app store one single time, I tried to take a screenshot of it, and it went away, and weirdly, it didn't show on the screenshot either.

To be honest, I think iOS 6 was rushed like hell for the iPhone 5. There are just so many weird bugs showing up on the iPhone 5 in iOS 6, especially in the keyboard section. I think and hope they will sort it out in one of the coming updates, because it's annoying and cripling the use of this new phone. Try this for instance; Search google for something (anything would do). Then, when you get your searchresults, go to the searchbar on the google page, click in the search field, and try to hold your finger on the search word you typed in, like you would if you would go in and edit a word if you misspelled it. Atleast here, it won't come up with the magnifying circle, or move the cursor into the word I typed earlier. Very weird.
 
My first iPhone 5 did the thing when entering my password in the App Store. I return it for that, headphone jack not working, and I wanted to switch colors.
 
I'm experiencing this issue as well and I assume its software related. Going to wait a little bit and see if there are any updates from Apple on it before getting an exchange. Its pretty minor.
 
Senior advisor says it's a hardware issue, LCD issue to be specific. said they will send an express replacement (need to put hold on credit card, which they will refund once they receive the defective phone). so apparently, it's a hardware issue.

btw, they replacements that get sent out are new units.

And, unless you have Applecare will charge you $29 shipping.
 
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