Apple has reportedly returned a batch of iPhones to manufacturer Foxconn, as they were not fit for sale.
An estimated batch of around 5 to 8 million faulty iPhones has been allegedly returned to the Taiwanese manufacturer Foxconn, according to a report from China Business.
For each smartphone the reported labour costs are around $200 (£131), meaning Foxconn could be preparing to suffer a $1.6 billion (£1.05 billion) cost to repair or replace the handsets.
Foxconn has already reported its lowest revenue numbers in over a decade earlier this month, so such a blow is further bad news for the iPhone and iPad range manufacturer.
It is possible that the iPhone 5 is the faulty model in question though, as the handset was affected by quality control issues immediately after launch.
Several customers complained of easily scratched handsets, with some even experiencing devices that were already marked straight out of the box. Such a high number of complaints forced Apple to recall production of the iPhone 5 to address the aluminium issues customers were experiencing.
Foxconn executives admitted then that the iPhone 5 was difficult to assemble, so perhaps similar issues are occurring again.
Apple also received word that some iPhone 5 owners had light leaking out between the display and the antenna, beneath the power button.
Due to these problems, Apple took over two months to achieve a supply and demand balance for the iPhone 5.
Apple will be revealing its Q1 2013 revenue earnings later today, revealing the sales numbers of its smartphone and tablet range.
Via: The Register