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Apple Returns Millions of Defective iPhone 5 Smartphones

By - Source: Tech radar | B 33 comments

Apple returns 5-8 million defective iPhone 5 smartphones to its foreign manufacturer, Foxconn.

Have you ever bought a new phone and realized it's broken, having to return it and causing you inconvenience? Apple gets returns from customers, but now it's had to do some returns of its own. The Taiwanese manufacturer, Foxconn, who supplies Apple with its iPhone 5 devices, has received between 5 and 8 million iPhones back from Apple with a complaint concerning sub-standard manufacturing quality.

The agreement between Apple and its outsourced manufacturer allegedly states that a 90 percent quality rate is required (meaning only 1 out of 10 iPhones are allowed to be broken). However, Foxconn has only been able to achieve an 80 percent quality rating; therefore, they are having to refund Apple for all the sub-standard phones. As each phone has an estimate labor cost of around $200 USD, Foxconn is losing around 1.6 billion Yaun ($257 million USD) in revenue to fix the iPhones for Apple. 

This news, together with the fact that Foxconn has recently declared its worst revenue statistics in over ten years, could mean that Foxconn might not be Apple's preferred manufacturer for much longer. With a speculated launch of a new iPhone 5S or iPhone 6 coming out, we hope that problems associated with the iPhone 5, such a light leaking between the screen and antennae and the use of substandard aluminum, will not be present on the release of Apple's next big phone.

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Top Comments
  • 33 Hide
    ddpruitt , April 25, 2013 3:08 PM
    Foxconn should send them back to Apple:
    "Your holding them wrong"
  • 22 Hide
    icepick314 , April 25, 2013 2:45 PM
    that's what you get for going with the lowest bidder...
  • 21 Hide
    house70 , April 25, 2013 2:51 PM
    Does this mean Apple is giving Foxconn the boot? Hard to believe, unless they found an even cheaper manufacturer.
    Anyways, there goes another myth (Apple's flawless manufacturing). It's just another manufacturer, nothing special.
Other Comments
  • 22 Hide
    icepick314 , April 25, 2013 2:45 PM
    that's what you get for going with the lowest bidder...
  • 3 Hide
    anononon , April 25, 2013 2:48 PM
    Its that top end overworked chinese quality...
  • 21 Hide
    house70 , April 25, 2013 2:51 PM
    Does this mean Apple is giving Foxconn the boot? Hard to believe, unless they found an even cheaper manufacturer.
    Anyways, there goes another myth (Apple's flawless manufacturing). It's just another manufacturer, nothing special.
  • 14 Hide
    fmradio49 , April 25, 2013 2:52 PM
    In other news eBay is reporting a sudden very large spike in iPhone 5 listings.
  • 10 Hide
    Anonymous , April 25, 2013 3:06 PM
    So glad I left behind the Iphone at the 4th one last year. They can have it.
  • 33 Hide
    ddpruitt , April 25, 2013 3:08 PM
    Foxconn should send them back to Apple:
    "Your holding them wrong"
  • -4 Hide
    sun-devil99 , April 25, 2013 3:12 PM
    Quote:
    that's what you get for going with the lowest bidder...


    If they are using the "lowest bidder", I think what the price of the iPhone would be if they went with someone more expensive.
  • -2 Hide
    dalethepcman , April 25, 2013 3:25 PM
    "the fact that Foxconn has recently declared its worst revenue statistics in over ten years"
    What are you smoking? Foxconn had NT $100B ($3.6B USD) in profits last year, which is a record HIGH.
    http://news.cnet.com/8301-13579_3-57576228-37/apple-supplier-foxconn-has-record-profit/
  • 5 Hide
    christop , April 25, 2013 3:27 PM
    200 Bucks in labor makes me laugh my but off. More like 2 yen.
  • 2 Hide
    NightLight , April 25, 2013 3:42 PM
    what? i heard from every iphone user i know that their phone *never* breaks :p 
  • 0 Hide
    athulajp , April 25, 2013 3:45 PM
    Quote:
    Quote:
    that's what you get for going with the lowest bidder...


    If they are using the "lowest bidder", I think what the price of the iPhone would be if they went with someone more expensive.


    It shouldn't actually even be this bad, apple has a much higher markup than other companies.
  • 0 Hide
    vmem , April 25, 2013 5:58 PM
    Quote:
    that's what you get for going with the lowest bidder...


    Um, it's called private business, you're supposed to consider all costs and benefits, and go with the lowest bidder. Otherwise you're just a terrible businessman, not that there's anything wrong with that of course. Personally I would say this further proves Apple's new management's inadequacies when compared to the Jobs era.
  • 0 Hide
    velocityg4 , April 25, 2013 6:02 PM
    $200 bucks in labor? What are they made by hand? Is the glass hand blown, the case forges with hammer and anvil and circuit boards soldered with a soldering iron? Haven't they heard of robots in China?
    I know circuit boards were made by robots in the 80's probably a lot of robotics going back to the first microprocessor.. Their couldn't be more than 15 man minutes of labor in one of those. Perhaps those Chinese workers are making $800 an hour.
  • 0 Hide
    mrmike_49 , April 25, 2013 6:23 PM
    even a goal of 90% good phones is pathetic! I know that Quality Assurance is a foreign concept to the Chinese, but that is ridiculous
  • 0 Hide
    bebangs , April 25, 2013 6:31 PM
    Made in china But design by Apple.
    so who's at fault?
  • 1 Hide
    mman74 , April 25, 2013 6:57 PM
    Foxconn might might be the only vendor that can do the quality and volume that Apple needs. Oh yes, they can go to Samsung, but good look asking them to build you your next iPhone and iPads with any excess capacity they might have.
  • 1 Hide
    goodegg , April 25, 2013 7:23 PM
    Latest Foxconn memo:
    The beatings will continue until product quality improves.
    Thank you,
    Mgmt
  • -1 Hide
    del35 , April 25, 2013 7:23 PM
    If you are dumb enough to buy an iPhone, then you deserve the worst and you are getting it!
  • 0 Hide
    loneninja , April 25, 2013 7:52 PM
    I work in a locally owned Verizon store, this may explain why we won't be receiving any more Iphone 5 shipments for 2-6 weeks.
  • 0 Hide
    sundragon , April 25, 2013 11:44 PM
    Quote:
    Foxconn should send them back to Apple:
    "Your holding them wrong"


    Try "You're holding them wrong"... Sigh

    English is my second language and I can get that...

    Joke's getting old, fandroids need to get better material for trolling.

    Sent from my Nexus 7
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