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5-8 million faulty iPhones returned to Foxconn, source claims

updated 09:57 am EDT, Mon April 22, 2013

Could cost manufacturer up to $1.6 billion

Apple has returned a batch of millions of botched iPhones to its main manufacturing partner, Foxconn, a source at the latter company tells China Business. It's believed that anywhere between 5 and 8 million units were returned for various unspecified defects. As the cost to manufacture is estimated to be $200 per phone, Foxconn could be taking a loss of as much as $1.6 billion.

It's unmentioned however which iPhone model or models have been affected. The most likely candidate is the iPhone 5, which is Apple's flagship device and has had well-publicized problems with manufacturing in the past. Alternately though a mix of iPhones may have caused problems, or even an unreleased model, although reports have only hinted that a new iPhone might be in mass production.

Manufacturing difficulties could explain widespread analyst expectations that iPhone shipments will fall below forecasts for the March quarter. In at least some cases, though, analysts have suggested that demand for the iPhone 5 has been lower than anticipated. Apple is due to announce its Q2 results tomorrow.



By Electronista Staff
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  1. hayesk

    Professional Poster

    Joined: 09-17-99

    Oh for F's sake!

    What company doesn't return their defective products? Stop trying to turn this into a news item. You're contributing to the "Apple is doomed" nonsense.

  1. hayesk

    Professional Poster

    Joined: 09-17-99

    yuan, not dollars.

    Also, other sites are claiming it's 200 yuan per phone, not dollars. Big difference!

  1. shmoolie

    Junior Member

    Joined: 05-30-02

    doubt it

    I doubt that must of this story is true. The vagueness sounds like another internet type story where one person heard it from another who heard it from a friend who has a cousin who knows a person who works at foxconn.

  1. c4rlob

    Fresh-Faced Recruit

    Joined: 05-21-09

    I hope...

    I really hope Apple returned them with a huge THANK YOU note for the tireless hours the Foxconn workers put into the vast majority of their phones.

  1. Grendelmon

    Dedicated MacNNer

    Joined: 12-26-07

    Hmm

    The repercussions of this report, if true, are that Foxconn takes a serious financial hit to replace any defective units. So it's really more of a stab at Foxconn than it is to Apple. But then again, as shmoolie said, it could all just be a bunch of BS.

    http://translate.googleusercontent.com/translate_c?depth=1&hl=en&rurl=translate.google.com&sl=zh-CN&tl=en&u=http://biz.cb.com.cn/12716612/20130420/461727.html&usg=ALkJrhgFVuj0b23Rez6tAxSEAxI_sjaqjg

  1. MisterMe

    Fresh-Faced Recruit

    Joined: 05-04-07

    Sounds like nonsense to me

    your comment

  1. macmediausa

    Fresh-Faced Recruit

    Joined: 02-23-05

    They should be recycled

    It's definitely not 200 yuan as that would make it around $35 or so to manufacture.

    Apple should have Foxconn mark the phone up so that it permanently shows a FAULTY, NO WARRANTY label on them. The phones then should be sold cheaply to a 3rd world country like somewhere in Africa where people can be exposed to this technology where they normally could not afford it. The ones that don't have issues affecting essential phone aspects should be used and not destroyed. That's a lot of potential landfill waste that could be saved and everyone will benefit.

  1. arrrc

    Banned

    Joined: 03-13-13

    It's funny I actually did get a faulty one but got a replacement. Is this just BS to tank Apple's stock?

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