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April 22, 2013

Apple return 5-8M iPhones to Foxconn, Not Fit For Purpose

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It looks like Foxconn has apparently botched a batch of iPhones, which Apple returned to the contract manufacturer because they were not fit for sale.
Details of just what went wrong are sketchy, as the source for this tale is a supposedly Foxconn staff member chatting to China Business. That report, after being translated through Google, suggests Apple sent back at least five million and could be as many as eight million, “due to appearance of substandard or dysfunctional problems.”
With a cost to manufacture, estimated at $200 apiece, Foxconn is apparently preparing to take a hit of up to $1.6bn to cover the cost of making replacement handsets. China Business suggests the cost of making new iPhones represents further bad news, not a reason for Foxconn’s recently-revealed financial woes.
China Business is silent on which model of iPhone failed Apple’s quality tests. If it’s the current iPhone 5, or the still-on-sale 4S, the impact of eight million phones would punch a two-or-three-week hole in Apple’s supply chain, an assertion we make on the basis that the company says it sold 47.8m handsets in its last quarter. That quarter included Christmas, so we can safely assume the January-March quarter sees a little less handset-selling action.

source: China Business

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Dave Thornton

Senior Editor

Senior Editor
Been involved in technology for many years, more than I care to remember. Live in Dundee, Scotland. I like Android, Windows Phone OS, BlackBerry OS and iOS, and love writing about all things techie. Currently have a Honor 6+, Elephone P6000, Nexus 5, Chrombook C720, HTC One M7, Nokia Lumina 625, Microsoft Lumia 435, Blackberry Q10, HTC Hero and iPad mini