Apple Returns Faulty iPhone Devices to Foxconn

By News Release | April 23, 2013

Apple Returns Faulty iPhone Devices to Foxconn

Foxconn Technology Group, manufacturer of Apple’s iconic iPhone devices, had to take back 5 million handsets due to faulty functions or subpar chassis, according to a report published by China Business Journal on Sunday. The journal reported, citing unnamed sources, that on March 15, the company received 5 million iPhone sets. The Taiwan-based electronics assembler has to spend $32.40 on each device, totaling around $162 billion, to refurbish the defective devices.

The additional expenses would be equivalent to about two-thirds of the profits made by the integrated Digital Product Business Group (iDPBG), a division of Foxconn, in 2012. According to the source, iPhone devices were returned due to outdated quality management. The company is growing quickly in the Chinese mainland, where the number of employees has increased two-fold to reach 1.2 million from nearly 600,000 in 2009.

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