When consumers buy a gadget that doesn't work as advertised, they exchange it for one that does. Same goes for Apple when Foxconn delivers a product that isn't up to Apple's standards.
According to published reports early Monday morning, Apple has returned somewhere between 5 and 8 million iPhones to Foxconn. The devices were deemed "defective" by sources speaking with China Business.
The defective aspect of the devices has only been vaguely described as an "appearance of substandard or dysfunctional problems.” What that means, exactly, is yet to be determined. But Foxconn could take a hit worth $1.6 billion to cover the cost of repairs or replacements.
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.
Source: U.K. Register