8 Million Faulty iPhones Could Cost Foxconn $256.8 Million

Posted on Apr 22 2013 - 10:00am by Editorial Staff

Apple-iPhone

According to a report on China Business Journal published Saturday, the faulty iPhones could cost Foxconn millions of dollars as reportedly the company have to replace as much as 8 million such units. The Cupertino-giant on March 15 returned about 5 million units to Foxconn over appearance and functions problems.

With such hurdle, Foxconn now have to pay a labor cost of 200 yuan (about $32) a pieces, costing total of 1.6 billion yuan (about $256.8 million) for total 8 million faulty units to the company, which is nearly two-thirds of the 2012 profits generated by Foxconn’s integrated Digital Product Business Group (iDPBG), the group which makes iPhones for Apple.

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.