A few days ago, according to a report submitted on the 15th, Apple had returned about 5 million iPhone 5s to the Foxconn factory, apparently due to physical appearance problems and malfunctions. A few days later that figure has risen to 8 million devices, which may mean that Foxconn has had to pay some $257 million to re-manufacture those devices.
When a large technology company sells millions of devices worldwide, it is logical that problems arise , especially among companies that manufacture a large part of the components of these devices. When one of these companies has the reputation that Apple has and the other one has a history of problems behind its back, as it is the case of Foxconn , the journalistic “gossip”, the exaggerations and the unconfirmed rumours are our daily bread .
Why are we saying all this? Because it seems that Apple has had to return between 5 and 8 million defective iPhone 5’s to the company that assembles them, Foxconn, because of various appearance and operating problems . We say between 5 and 8 because the data are not concise or clear, and none of the parties concerned has given concrete figures in this respect .
Apparently, on Saturday the 15th, a report was filed stating that Apple had returned 5 million defective iPhone 5’s to the Foxconn factory due to physical and display problems. Shortly after that, an anonymous user claimed that the report was wrong, as was actually 8 of the millions of iPhones 5 returned. What was the problem? Well, it seems that the team in charge of quality control was not experienced enough for this position, as managers have been replaced in the short term.
Since the end of 2012, the iDPBG (integrated Digital the Product Business Group) has changed its director up to three times (Michael Chung, Chung Chengyu and currently Huilong Chen). Due to the lack of experience of these directors , the necessary measures have not been taken to ensure that the strict quality controls required by Apple have been properly established.
This would look like a simple anecdote if it weren’t for the numbers that have been shuffling around since the news broke. It seems that Foxconn might have to pay about 200 yuan (about 32 dollars) for each of the returned iPhones, which would be the equivalent of about 1.6 million yuan, that is, almost 257 million dollars (256,800,000) if the millions of returned devices are 8. That means almost two thirds of the profits generated by the group in charge of manufacturing these devices.
Actually the news is not as trivial as it seems, as this could have caused that Apple has sent a group of workers to collaborate with the factory to increase the quality level, or that Foxconn itself has had to suspend the production of three of its factories (Shenzhen, Zhengzhou and Taiyuan) between April 7 and 15. But as we say, this is only rumour, as neither of the two parties involved has confirmed the figures.
And you? Are you having trouble with your iPhone 5?