Foxconn Stumbles Again? 8 Million Faulty iPhones Returned By Apple
A Chinese language newspaper is reporting that Apple wasn't the least bit happy with the appearance and/or functionality of a recent batch of iPhone devices manufactured by Foxconn, and so it rejected the order. Based on a supposed conversation it had with several Foxconn insiders who asked not be named, China Business reports at least 5 million iPhones were returned, and perhaps as many as 8 million.
According to China Business (via Google Translate), it costs Foxconn around $200 to produce each iPhone. That means Foxconn will have to swallow as much as $1.6 billion if the number of returned iPhones is closer to 8 million than 5 million. Even on the lower end of the scale, Foxconn's looking at a hit of no less than $1 billion.
It's not clear which model iPhone Apple was unhappy with, though this isn't the first time Foxconn has had issues. Foxconn has repeatedly stated that Apple's iPhone 5 model is difficult to produce, going so far as to say it's a defective design after users complained of there being scratches and chips on brand new iPhone 5 devices right out of the box.
Unfortunately for Foxconn, the timing couldn't be worse. Amid a slowdown in Apple product sales, of which Foxconn is heavily invested in, the manufacture saw its Q1 revenue plummet 19 percent.
According to China Business (via Google Translate), it costs Foxconn around $200 to produce each iPhone. That means Foxconn will have to swallow as much as $1.6 billion if the number of returned iPhones is closer to 8 million than 5 million. Even on the lower end of the scale, Foxconn's looking at a hit of no less than $1 billion.
It's not clear which model iPhone Apple was unhappy with, though this isn't the first time Foxconn has had issues. Foxconn has repeatedly stated that Apple's iPhone 5 model is difficult to produce, going so far as to say it's a defective design after users complained of there being scratches and chips on brand new iPhone 5 devices right out of the box.
Unfortunately for Foxconn, the timing couldn't be worse. Amid a slowdown in Apple product sales, of which Foxconn is heavily invested in, the manufacture saw its Q1 revenue plummet 19 percent.
