A Foxconn employee has sent a tip to news outlet China Business reporting that Apple has rejected between 5 and 8 million iPhone handsets “due to appearance of substandard or dysfunctional problems.”
The source of the information doesn’t specify what’s the iPhone model and what exactly was wrong with the units, so its hard to say whether there’s a problem with the aluminum casing or the hardware innards of the devices.
The report suggests that Foxconn would have to cough up as much as $1.6 billion to correct the issues with the problematic iPhones (that’s if no parts were salvageable and Foxconn had to stomach the entire cost of $200 per phone, which is unlikely).
The botched devices could result in two-to-three week hole in Apple’s supply chain, as the absence of up to 8 million iPhone 5 or iPhone 4S units could result in shortages in some regions. Luckily for Apple, this happened during a period of decreased interest for the new iPhone, as well as the lull in sales that follows the holiday season.
Source | Via