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I had the same issue

I had the same issue with my watch. I took it last Saturday to the Genius Bar. They had not seen this issue before, but they put it underneath a microscope and noticed that there was a small scuff or spec. They sent my watch back and I should have a replacement within a week.
 
My brand new space gray had a similar chip in it out of the box, albeit not as big as yours. It was in the same general area as well. Right along that seam. Doesn't matter to me because I'm returning it and buying a 42mm.

I've considering switching to a 42mm myself, 38mm was smaller than I expected.

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I just received my Watch and I have exactly the same small nick on it. Even at the same spot. It doesn't bother me too much as it's barely noticeable, but I'm afraid the coating could further peel off because of air moisture or moisture in general. Did you already contact Apple?

I have the same fear, I have setup an appointment at my local store, for tomorrow (earliest I could get) so, I'll find out more then.

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I had the same issue with my watch. I took it last Saturday to the Genius Bar. They had not seen this issue before, but they put it underneath a microscope and noticed that there was a small scuff or spec. They sent my watch back and I should have a replacement within a week.

good to know, thanks
 
good god people...its a watch. Its a COATING. It may come off. Don't like the idea of the coating chipping? Ok, well, maybe don't purchase a DLC watch.

I really don't understand people.

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I ditched my SS version in fear of small tiny scratches.

Fear? I find this sort of attitude to be so strange. It truly makes no sense. 'I really like that Tesla, but I sold it because someone might park a little too close and ding it.'

Yes, there's always a risk. But its a beautiful thing, so deal with it. But then again I suppose there are people out there who shun beauty out of fear. Its really kind of sad.
 
good god people...its a watch. Its a COATING. It may come off. Don't like the idea of the coating chipping? Ok, well, maybe don't purchase a DLC watch.

I really don't understand people.

It's a coating, yes, it shouldn't come off easily. The process of coating it, I imagine to be something similar to powder coating or ceramic coating, which can usually take one hell of a beating and not come off.

There's really no reason the coating should have chips or come off easily, if it does that could identify an incorrect mixture in the coating process. We are simply making sure Apple is aware there could be an issue with the coating process as well as making sure we get what we paid for.

Further more, I don't seem to have an issue with my Space Grey iPhone or iPad and that should be the same coating process. So this process of coating they've been doing for awhile, there shouldn't be chips/ease of chips occurring.
 
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