Feeds

Report: Apple returned 8M shoddy iPhones to Foxconn

Manufacturer feeling financial pain after botching a batch

Secure remote control for conventional and virtual desktops

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 an anonymous Foxconn staffer chatting to China Business. That report, after being forced through a couple of translation engines, suggests Apple sent back at least five million iPhones, and maybe as many as eight million, “due to appearance of substandard or dysfunctional problems.”

With a cost to manufacture of $US200 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 failing to appear 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.

If the botched phone is a newer-and-as-yet-unreleased handset, it could be grounds for a delay in its announcement or release. ®

New hybrid storage solutions

More from The Register

next story
Apple iPhone 6: Missing sapphire glass screen FAIL explained
They just cannae do it in time, says analyst
Half a BILLION in the making: Bungie's Destiny reviewed
It feels very familiar - but it's still good
Oh noes, fanbois! iPhone 6 Plus shipments 'DELAYED' in the UK
Is EMBIGGENED Apple mobile REALLY that popular?
Apple's big bang: iPhone 6, ANOTHER iPhone 6 Plus and WATCH OUT
Let's >sigh< see what Cupertino has been up to for the past year
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's SNEAKY plan: COPY ANDROID. Hello iPhone 6, Watch
Sizes, prices and all – but not for the wrist-o-puter
Get your Indian Landfill Android One handsets - they're only SIXTY QUID
Cheap and deafening mobes for the subcontinental masses
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.