According to Chinese media, Apple returned as many as five million iPhones to Foxconn due to various technical problems. The total number of returned phones may be as high as eight million.
This mess will cost Foxconn dearly. It is estimated that it will have to compensate Apple to the tune of 1.6 billion yuan, or $256.8 million dollars.
This is not the first time Foxconn faced such problems, but it might be the priciest incident to date. Reports of build quality difficulties emerged days after the iPhone 5 was launched and prompted Foxconn to step up its quality control protocols.
Foxconn was apparently forced to halt production in three plants in mainland China for a week earlier this month. Apple promptly dispatched a team to investigate and it seems that iPhone production remains slow to this day, ZDnet reports.