At this time, it remains uncertain just how extensive the hardware issue really is. Posts on forums can create a skewed view and may lead to an overestimation of the problems, since only those who are affected—possibly multiple times and on various platforms—tend to report their experiences, while countless iMacs might be functioning flawlessly.
The Nature of the Problem
The issue in question is quite intriguing because it is evidently a hardware flaw. The specific error involves continuous horizontal lines showing up on the display of the iMac M1, which greatly hampers both usability and the visual appeal of the screen. Users can quickly identify the source of the issue as it’s linked to the display, since those affected can still utilize an external monitor without any trouble. This indicates that the issue does not stem from a defect in the integrated GPU (iGPU).
User Experiences and Apple's Response
In extensive conversations across different platforms, users who are affected share their stories. Apple's response to the problem seems to vary from one case to another, but overall, customers find it to be quite unsatisfactory. As a general practice, Apple is currently denying repairs for devices that are out of warranty, as they haven’t acknowledged a widespread defect. One user on the Apple forum provided a fairly thorough account of the issue, mentioning thermal damage to a cable that hinders signal transmission. The likelihood of thermal damage increases with higher brightness settings on the display. Since the cable can't be easily replaced, potential repairs could be much more expensive.
Apple Community forum (1), Apple Community forum (2), Reddit