Apple returns up to 8m iPhones to Foxconn: reports

Cupertino-based iMaker rejects handsets on quality grounds

Tags: Apple IncorporatedChinaFoxconn Technology GroupTaiwanUSA
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Apple returns up to 8m iPhones to Foxconn: reports The iPhone returns may cost Foxconn up to $259m.
By  Stephen McBride Published  April 23, 2013

Apple Inc last month returned between 5m and 8m iPhones to its Taiwan-based manufacturing partner Hon Hai Precision Industry Co, Ltd (Foxconn) because the units failed to meet quality standards, according to reports this weekend from China Business and China Times.

Foxconn, which operates mainly out of mainland China-based factories, has previously fallen foul of quality-assurance contract clauses when early batches of iPhone 5 handsets were reported to have scratches on their screens. At the time, labour rights groups talking to Foxconn workers were reportedly told of harrowing working conditions, including long hours and inadequate rest periods, that may have led to faulty assembly of the smartphones.

In the latest incident the electronics manufacturer was reported to have been hit with a CNY200 ($32) charge per device, resulting in a total cost of as much as CNY1.6bn ($259m).

While reports did not indicate which version of the handset was affected no shortage of any current Apple devices has been made public.

Foxconn recently reported a 10% year-on-year revenue dip, for which it cited "disappointing" iPhone sales.

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