The leading manufacturer of devices Apple looks with concern the consequences of defective manufacturing iPhones. Foxconn might have to perform extra outlay of nearly 1.6 billion yuan (256.8 million dollars ) to repair the eight million Apple returned units.
According to ZDNet , citing a report by China Business Journal, Apple returned to the March 15 Foxconn five million units of the iPhone due to problems of appearance and function. Even according to an anonymous source within the Taiwanese manufacturer, the total number of returned iPhones could reach eight million
If Foxconn is forced to repair or re-manufacture the defective phones replacing damaged parts, the resulting labor cost would be 200 yuan ($ 32) for each of the eight million defective units, equivalent to about 1, 6 million yuan ($ 256 million).
This amount is two-thirds of the profit generated in 2012 by the group of Foxconn , Integrated Digital Product Business Group (iDPBG), to manufacture the iPhones from Apple and that is the group’s most profitable company.
This is not the first time there is this type of quality control problems . Foxconn has been trying to address the problems of quality control since the end of 2012, changing its directors: Michael Chung first, then and now Huilong Chung Chen Chengyu. However, Chen has no experience in dealing with Apple, Foxconn’s biggest customer.