So I went to my appointment at apple store today. Showed it to the "genius" and he said "that's a bummer, we can replace this phone for you. ill be right back." After a 10 minutes the "genius" comes out to inform me that my phone had been tampered with. When I asked him to explain, he said the screws on the phone were stripped, and there were pieces missing inside the phone. Also tampering stickers were also broken inside which as we all know violates warranty and apple care conditions.
He implied that I had opened the phone myself, and tried to fix it which was not the case. I received the box from ups Friday morning at approx 930am. I opened the box and the box inside was sealed. I then turned on the phone and when the screen came on immediately noticed the horizontal line on the lower part of the screen and from there down, blurry.
I explained to him I immediately called apple and set up this appointment. I never did another thing to the phone after. It was still functioning.
After going and forth for 20 minutes, he went into the back again, he came out and explained that "i will get benefit of doubt" and then told me to call apple about the issue.
Two things could have happened. Either a factory employee tampered with the phone or it happened during a layover while being delivered from china. This issue is not over yet.
Fair warning to all and if you have same issue, please post and call apple.