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Apple may ditch FineWoven cases, return to leather-like material
(appleinsider.com)
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I got mine replaced due to the sides peeling as well (covered under warranty) and the replacement is now peeling after only a few months. Hopefully whatever is next is a little more durable - even the leather cases the last few years lacked in that area.
Get it replaced again now, they’ll cover another replacement but not for long.
I would but I’m getting the 16 pro when it comes out so not worth the effort.