It is recently reported that last month Apple returned at least five million and perhaps as many as eight million iPhones to manufacturing partner Foxconn due to defects in either appearance or operation. The reports indicate that it will cost Foxconn roughly 200 yuan ($32) per device to correct the issues with the defective iPhones, resulting in a charge of as much as 1.6 billion yuan ($259 million) to address the problem. It is unclear which iPhone models are affected by the issues, but Apple does not appear to be suffering from major shortages of any of its current devices.
According to Security Daily, in this regard, Foxconn Technology Group said that Foxconn expressed no comment on any customer’s product-related information.
In response to the exposed two major problems, i.e. poor management and ineffective product quality control resulting in high defect ratio, Foxconn, told reporters that as the world’s largest electronics manufacturing service provider, Foxconn has long existing strict internal management and quality control system, and uphold the customer-oriented business philosophy. For this reason, Foxconn has the world’s leading customer base and will continue to provide high-quality services.
At the same time, the return crisis too some extent reflects that the sale of the Apple iPhone series products is not as good as Apple and the market had anticipated.