Apple has rejected up to 8 million iPhones from Foxconn, report says

By on April 22, 2013, 3:30 PM

Apple has returned between five and eight million iPhones to Foxconn over quality control issues. The report, which comes from an anonymous Foxconn worker speaking with China Business, said the issues are “due to the appearance of substandard or dysfunctional problems.”

If true and if the figures are accurate, the returns could cost Foxconn somewhere around $1.6 billion. That of course is assuming that the returned phones are trashed which is unlikely. A more probable scenario would see Foxconn disassemble the faulty phones and reuse whichever parts are still in acceptable condition.

It’s unclear which specific handsets are affected nor is it known over what period of time the returns encompass. If the phones in question are current generation models, Apple could be facing some stock shortages in the coming months. Worse more, if the returned iPhones are the upcoming model, Cupertino may have to delay the launch past the rumored June / July timeframe.

All of this is in addition to recent bad news out of Foxconn with regards to financial earnings. The manufacturer posted record profits for the fourth quarter of 2012 before falling 19 percent (year-over-year) in the first quarter of 2013. Analysts blamed iPhone orders for the decline in Foxconn sales, claiming their revenue depends too much on Apple.

The next iPhone, which most believe will be a beefed up model of the current version, is expected to be unveiled on June 20. The handset would then launch sometime in early July if recent rumors are to be believed.




User Comments: 12

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1 person liked this | howzz1854 said:

Perhaps they should pay and feed their employees more so they have the energy and means to put together the phones better.

cliffordcooley cliffordcooley, TechSpot Paladin, said:

Perhaps they should pay and feed their employees more so they have the energy and means to put together the phones better.
You know as well as I do that if they did that, there would be no need for Foxconn to stay located in China. China Business will continue to repress there population as long as they have other countries supporting their methods. Every country has repression, some worse than others.

1 person liked this | captaincranky captaincranky, TechSpot Addict, said:

Perhaps they should pay and feed their employees more so they have the energy and means to put together the phones better.
No, this is a minus -1 correlative conclusion. The Chinese people build iPhones, (and everything else for that matter), for the greater glory of the People's Republic of China. Notwithstanding the lack of social entitlement entitlement institutions. In other words, you have to build iPhones cheap, because there's no DPA or SSA around to pay you more not to work, while you sell crack to supplement your income..

And all of that notwithstanding, great pay and benefits doesn't always translate to superior job performance. Don't believe me? Then Google "Andrew Bynam, Philadelphia 76ers".

Oh hell, for that matter, look anywhere in pro sports and you'll find boundless examples of under performance, coupled with massive overcompensation. Go team...

.

howzz1854 said:

You guys are taking what I said way too seriously.... it was a joke, with all the bad press Foxcoon has been getting lately... obviously no one got it.. tough crowd.

captaincranky captaincranky, TechSpot Addict, said:

You guys are taking what I said way too seriously.... it was a joke, with all the bad press Foxcoon has been getting lately... obviously no one got it.. tough crowd.
Where or when exactly did you draw the conclusion I was serious. Jeez....tough crowd.

That was answer "one".

Answer "two": 90+% percent of that which I post, is sarcasm, pure and simple. The other 10% is sarcasm with malicious intent.

Answer "three", (and my favorite): Maybe you simply aren't that funny.......:p

cliffordcooley cliffordcooley, TechSpot Paladin, said:

You guys are taking what I said way too seriously....
I was actually thinking and hoping you were serious! Since you were joking, that only means you were playing along with the repression of others.

howzz1854 said:

You guys are taking what I said way too seriously....
I was actually thinking and hoping you were serious! Since you were joking, that only means you were playing along with the repression of others.

it's a sad world out there. the least I can do is make fun of those who repress others.

captaincranky captaincranky, TechSpot Addict, said:

I was actually thinking and hoping you were serious! Since you were joking, that only means you were playing along with the repression of others.
Listen, there are so many segments of the US population who genuinely deserve repressing, and never get one bit of it. That being said, you need to take humor where you can find it.

cliffordcooley cliffordcooley, TechSpot Paladin, said:

That being said, you need to take humor where you can find it.
Yes but not at the expense of others. There are topics where humor has no place.

captaincranky captaincranky, TechSpot Addict, said:

Yes but not at the expense of others. There are topics where humor has no place.
Really, spare me the idealism. My neighbors sell crack and heroine off the porches of houses they're either squatting in, or that HUD section 8 is paying for. Yet, because I'm "a bit different", they run their yaps when I park my motor cycle in the street, to save a parking spot when I'm driving my car.

So really, I'd like to see most of these t***s, repressed with a flame thrower. You and your children are always invited over to "meet the beautiful people", and I'll of course I'd be happy to introduce you around. You can get a first hand look at your tax dollars at work.

And really, feel free to make fun of them all you like.....

treetops treetops said:

Looks like they are going to need more suicide nets.

Tygerstrike said:

LMFAO Capt. Been there, done that, got away with my sister intact. The "Ghetto" is a very bad place that even most cops wont go into. And ghetto isnt even the right word. More like.......fleeing from the Hell that we got ourselves into. When there is a empty space, those that want to be under the radar go there. As to the comment about feeding them better, YOURE RIGHT!!!!! Ive followed thw foxconn story for almost 2yrs now. Ive seen eveything from the suicide rate (1/15) to the average paycheck. China is a brutal place to live. Let alone try and run a business. Add onto that Chinas need to dominate its own ppl. You have a recipe for disaster. If feeding them more food would make them a happier employee, I say go for it. However Foxconn has to see that many phone returns as bad. Something is broken in their QA dept.

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