New York: Apple has returned five to eight million iPhones to manufacturer Foxconn as it claimed these phones were unfit to sell.
The smartphones appeared to be non-compliant and had dysfunctional problems, pc magazine reports.
With the selling price of 200 dollars per phone, Foxconn will now have to spend more than one billion dollar to make up for the devices to replace the defective parts in the smartphones. Consequently, the parent company Hon Hai will incur huge losses and its profits over the years will `go down the drain. `
While Foxconn and Apple have maintained their quiet over the issue, Foxconn has reportedly undergone a 19 percent drop in its sales as compared to last year.
According to the report, the name of the defective model has not been mentioned so far but the return of iPhone 5 will not cause much impact in the Apple iPhone market. However, if the newer model of Apple’s flagship phones turns out to be defective, the release announcement might get delayed.
Microsoft has recently patented with Hon Hai for allowing the manufacturer to produce devices such as smartphones, tablets and Television sets, the report added.
First Published: Tuesday, April 23, 2013, 18:47