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Rumor: Apple returned batch of 8 million defective iPhones to Foxconn

post #1 of 53
Thread Starter 
A batch of as many as 8 million iPhone units were reportedly not up to Apple's standards after being assembled by Foxconn, and were subsequently returned to the company.

The alleged manufacturing issues were detailed on Monday by The Register, which cited a report first published by China Business. It's alleged that an anonymous Foxconn employee revealed that the number of iPhones affected ranges from 5 million to 8 million.

iPhones
Apple's current iPhone lineup.


The issues are apparently "due to appearance of substandard or dysfunctional problems." Foxconn is allegedly preparing to take a hit of up to $1.6 billion for the returned products.

The report failed to indicate exactly which iPhone model was affected by the apparent issues. When it launched late last year, the iPhone 5 saw a number of production issues as Foxconn ramped up its assembly.

In fact, the company went as far as to admit that the iPhone 5 was "the most difficult device" it was ever tasked with assembling. However, since late 2012, there has been no indication of any iPhone 5 production problems from Foxconn.

The Register also speculated that the rumored production problems could be related to Apple's next-generation handset, frequently referred to as an "iPhone 5S." Well-connected analyst Ming-Chi Kuo indicated earlier this month that Apple's "iPhone 5S" is likely to face production problems due to technical challenges, namely the anticipated inclusion of a fingerprint sensor below the home button.

"Apple has to work out how to prevent interference from the black and white coating material under the cover glass," he said. "Apple is the first to attempt this function and technology, and time is needed to find the right coating material, which will likely affect iPhone 5S shipments."
post #2 of 53
In short, here is where all the false propaganda from Apple sales slowing down originates: from faulty manufactured products returned and replaced.
post #3 of 53
Hmmm.

So according to one lone and anonymous staffer who reportedly said something to China Business and got it picked up by the Register this becomes a story? I guess China Business is one of the more reliable sources then.
melior diabolus quem scies
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melior diabolus quem scies
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post #4 of 53
I am amazed media give these anonymous mouth pieces a voice. In the original report, the returned units was simply 5 million. Then it ballooned to 8 million. In otherwords, the source (if there really was one) simply made things up.
post #5 of 53

It's highly unlikely that Apple and Foxconn would let 5 million defective units be produced before catching a defect that would require the device to be scrapped or reworked.  I'm sure there are Apple QA people there at the factory as well as company inspectors.  I could see a batch of a few thousand.  But 5 million would have to be produced over time with a complete failure of both companies to check properly.

post #6 of 53
It's The Register. Probably one of the more anti-Apple sites out there. These days with Apple anything gets reported even if the source is highly questionable. Heck we're getting more TIm Cook must go rumors from none other than hedge fund guy Doug Kass. 1rolleyes.gif

http://tech.fortune.cnn.com/2013/04/22/apple-cook-whisper-campaign/?source=yahoo_quote
post #7 of 53
I heard it was 23 million units returned (from an anonymous source).

Eph

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Eph

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post #8 of 53

How would Apple even catch defective units? The rumor says they were returned, meaning they first shipped. Apple doesn't open every iPhone box to inspect the phone before selling it. This sounds very suspicious.

post #9 of 53
I like mustard and mayonnaise with my baloney!.
post #10 of 53

5 million iPhones is 1 to 1.5 week of production. What Apple QA has done in this whole time? Just slept? The media is picking up every story about Apple, no matter and dubious and treats that as fact. One person said something to another person at a local newspaper and it gets picked up by a tabloid and treated as fact? Can someone post the original article as appeared in the Chinese newspaper? I bet someone here would be able to do a human translation for us. I think this is a dirty trick played by Samsung to discredit Apple. They had been caught before in the Digitimes (http://apple-investor.com/2013/04/digitimes-is-a-samsung-shill/)

 

“When you need to sell a lie, you get the press to sell it for you” – Lester Siegel (from the movie Argo).

post #11 of 53
It's unlikely but it's possible, especially if the defect isn't with Foxconn's assembly but with a component that was shipped to Foxconn for inclusion in the final product. Even something as simple as a faulty camera component that only shows it's not functioning properly under certain usage conditions.
Edited by SolipsismX - 4/22/13 at 6:26am

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #12 of 53
Quote:
Originally Posted by SolipsismX View Post

It's unlikely but it's possible, especially if the defect isn't with Foxconn's assembly but with a component that was shipped to Foxconn for inclusion in the final product. Even something as simple as a faulty camera component that only shows it's not functioning properly under certain usage conditions.


As mentioned above, though, how would you know they are faulty? Did Apple have 5-8 million returned units?

 

[Oh, never mind... I misread your comment.]

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post #13 of 53
Quote:
Originally Posted by island hermit View Post


As mentioned above, though, how would you know they are faulty? Did Apple have 5-8 million returned units?

I don't understand your query. How is anything deemed faulty? It's discovered, then verified. You analyze why it's faulty. If it's HW related you determine which hardware it is and narrow down to certain to defective batches.

For example, Foxconn employees get a batch of defective displays. They simply don't work at all. When Foxconn does its tests the unit doesn't work. One every now and then isn't just a defective units but this starts happening over and over. They let it be known (perhaps a computerized system has alerted someone already since x-many bad units went through. They investigate and find its the displays. They figure out the batch numbers for problematic component and make sure no other devices are made with them. They might even slow down production to do additional tests before ramping up again.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #14 of 53
Wait, didn't a story from cnbc a couple of weeks ago say that a employe of foxxcon told them they where doing nothing? That they had no orders??? now they are getting 5m phones back
post #15 of 53
Quote:
Originally Posted by SolipsismX View Post

It's unlikely but it's possible, especially if the defect isn't with Foxconn's assembly but with a component that was shipped to Foxconn for inclusion in the final product. Even something as simple as a faulty camera component that only shows it's not functioning properly under certain usage conditions.

Anything is "possible". It's also "possible" that, seeing how earnings are about to be announced,  a lowlife scumbag money manger presiding over a very large share of Apple (64% ins. owned) is spreading FUD ...AGAIN .... to drive down share price to allow him/her to gain a quick and easy profit. The great thing about "anonymous" sources is that everybody seems to have one. That's my bet.

See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
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See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
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post #16 of 53
Quote:
Originally Posted by jpvn View Post

Wait, didn't a story from cnbc a couple of weeks ago say that a employe of foxxcon told them they where doing nothing? That they had no orders??? now they are getting 5m phones back

 

Well, that is one way to give them something to do...

 

1biggrin.gif

post #17 of 53
Quote:
Originally Posted by newbee View Post

Anything is "possible". It's also "possible" that, seeing how earnings are about to be announced,  a lowlife scumbag money manger presiding over a very large share of Apple (64% ins. owned) is spreading FUD ...AGAIN .... to drive down share price to allow him/her to gain a quick and easy profit. The great thing about "anonymous" sources is that everybody seems to have one. That's my bet.

I agree that your scenario sounds more plausible.


PS: Not everything is possible. The impossible, for instance. 1tongue.gif

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #18 of 53
Quote:
Originally Posted by SolipsismX View Post


I agree that your scenario sounds more plausible.


PS: Not everything is possible. The impossible, for instance. 1tongue.gif

Give it time. It was once "impossible" to visit the moon, now it's possible. 1wink.gif

See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
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See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
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post #19 of 53
Quote:
Originally Posted by jax44 View Post

I like mustard and mayonnaise with my baloney!.

Yes but does your baloney have a first and second name?
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"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #20 of 53
If it was a whole batch then it was likely caught at the factory during per shipment QA testing, not the implication they went to stores or customers.

My guess is that this number, which keeps changing as the story is posted and reported and it likely way lower than than even the 5 mil cited in one version, has to do with accumulated returns being charged back to Foxconn. It's likely in their contract with Apple that they have to 'pay' for failures due to assembly issues. Such as all the parts were fine but they didn't put in the glue to hold the battery in place. Or enough glue to properly attach the glass in a display. Or connect the wifi chip etc. and the number could be over several months from DOA returns at launch, QA testing before shipment, service returns with no signs of cx tampering etc.

But the spin is that they shipped, it was a huge batch and now folks will paint that iPhone sales should use been 8-10 million more, there could be more out there (witch hunt time) and so on. Like the LG story this will bring the stock down.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #21 of 53
Quote:
Originally Posted by newbee View Post

Give it time. It was once "impossible" to visit the moon, now it's possible. 1wink.gif

It's like the old riddle what is always coming but never gets here? Tomorrow. The impossible isn't possible, but once something previously deemed impossible becomes possible it's no longer impossible.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #22 of 53

That's a lot of phones.  A staggering amount really.  If the fingerprint sensor is causing problems/delays here's an idea...save it for the 6.  Yeah it's a nice security feature, but one that people have gotten by without for years.  I dont see it being a big selling point unless they are trying to get more business usage where a more secure phone might be significant.  Overall it isnt worth delaying the release or risk sending out a product with a feature that doesnt function right.  It's one thing to  have a map not work correctly, quite another to not be able to access your phone at all.  Although, I'm sure it would still have a password to by-pass it, but even so it isnt worth it.

post #23 of 53
I heard from my father's college roommate that the iPad mini sales dropped from a year ago. Who cares that the mini didn't exist a year ago.
post #24 of 53

deleted


Edited by MacRulez - 7/23/13 at 2:33pm
post #25 of 53
Sounds like Samsung paid trollls at work again. Hey, I heard there were 30 million samesung POS Galazy III's returned this quarter because they were crap.
post #26 of 53
Quote:
Originally Posted by Fithian View Post

I heard it was 23 million units returned (from an anonymous source).

23.5M!! Read your texts carefully or I'll stop feeding u disinformation.
post #27 of 53
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Originally Posted by MacRulez View Post


AppleInsider got you to click in.  That's all that matters.

Damn, you and I fell for it. Never again. Oh ...
post #28 of 53
Originally Posted by igriv View Post
…typing in a four digit code every time you want to do something is really annoying…

 

You mean every time you want to… get into the device… or change the code. Because those are the only times you have to use that code.

 

And those are the only times that having a code would be relevant.


You're subtle, but not subtle enough. Stop it.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #29 of 53
Originally Posted by igriv View Post
If you have a lock screen, then the phone LOCKS after a couple of minutes of inactivity…

 

Not mine. Do you use YOUR phone?


…and you have to type in the code to do ANYTHING.

 

Yeah, I seem to have mentioned that not ten minutes ago. It's called security. Because it's the security code. Is this difficult for you to comprehend?


I have given up on using the lock code for this reason…

 

You're either too lazy to figure out that you can change that or you don't have an iDevice in the first place. I KNOW the latter isn't true, so…

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #30 of 53

Not to worry. Those 5 million phones are on their way to India, China, Africa, Russia, Iran, etc. to be sold on the black market

Life is too short to drink bad coffee.

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Life is too short to drink bad coffee.

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post #31 of 53
I find the timing of this story to be interesting, just one day before Apple releases earnings. If Apple was not charged for these 8 million handsets at $200 each, that could mean $1.6B in savings to Apple vs having an extra 8 million unsold handsets in your distribution channel. If there is an upside to Apple's earnings report tomorrow, this could be a factor.
post #32 of 53
Quote:
Originally Posted by mstone View Post

Not to worry. Those 5 million phones are on their way to India, China, Africa, Russia, Iran, etc. to be sold on the black market

If Foxconn has to eat 1.6 billion, I wouldn't blame them if they did that.  Heck, Apple might even be willing to look the other way while they did to save that much money.

post #33 of 53
Quote:
Originally Posted by igriv View Post

 

If you have a lock screen, then the phone LOCKS after a couple of minutes of inactivity... 

Not mine.

post #34 of 53
Quote:
Originally Posted by igriv View Post

Let's get this straight: a lowlife scumbag money manager owns a lot of Apple, and wants to drive the price DOWN??? Yes, that makes a lot of sense.

Before earnings, when it's "suspected" Apple will post below expectations, yes it does make a lot of sense because it's easier and all of the good news, products, etc. will come out later on, so they will stock up at the lowest price possible. Who do you think posts all of the FUD anyway, single unit shareholders?

See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
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See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
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post #35 of 53
Quote:
Originally Posted by SolipsismX View Post

I agree that your scenario sounds more plausible.


PS: Not everything is possible. The impossible, for instance. 1tongue.gif

Unless it's a 'mission' 1wink.gif
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nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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post #36 of 53
Quote:
Originally Posted by SolipsismX View Post


It's like the old riddle what is always coming but never gets here? Tomorrow. The impossible isn't possible, but once something previously deemed impossible becomes possible it's no longer impossible.

So I'm thinking that the best way to state "the impossible" then, might be with the words "at this time". ...lol.gif

See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
Reply
See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
Reply
post #37 of 53
Quote:
Originally Posted by newbee View Post

So I'm thinking that the best way to state "the impossible" then, might be with the words "at this time". ...lol.gif

In other words .... even the impossible is possible ... we just don't know how ...yet.

See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
Reply
See, in the record business, you can show someone your song, and they don’t copy it. In the tech business, you show somebody your idea, and they steal it. (Jimmy Iovine)
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post #38 of 53
Not a credible report. With the millions of phones Apple has shipped, it's not easy to imagine millions of phones would pass quality checks, then fail quality checks. It's not like see-through yoga pants.
post #39 of 53

I just read on Investor Place that along with the 5 million (it's 5 on that site) phones being returned, and "Unnamed Apple Executive" hinted to Forbes  that Tim Cook tenure is about done.  You know how Apple never keeps things secret!  And what a great thing for an Apple Executive to do, call Forbes!

post #40 of 53
Quote:
Originally Posted by digitalclips View Post

Unless it's a 'mission' 1wink.gif

I've always taken issue with Mission: Impossible. It really should be Mission: Improbable.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
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