MADRID, 22 Apr. (Portaltic/EP) -
The Foxconn company could be affected by the sale of the defective iPhones. The Japanese company would have to pay 32 dollars (24 euros) for each of the defective smartphones of the Cupertino company. All this would be equivalent to 256 million dollars (197 million euros) for the 8 million defective units sold.
According to a report by China Business Journal collected by the ZDnet website, on March 15 of this year Apple returned to Foxconn 5 million devices since these had defects in their appearance and in the internal functions of the mobile, which made them not work properly. According to a source who did not want to be identified, Apple could have returned up to 8 million mobile phones.
"It's not the first time these kinds of quality control issues have occurred," the source said. "The rapid growth and expansion of production brings enormous challenges for management staff."
On the occasion of these returns, Foxconn would have to pay 32 dollars (24 euros) for each defective device which would be equivalent to 256.8 million dollars (197 million euros) for the 8 million defective units that they will have to replace and fix. These figures are equivalent to two-thirds of the profit generated by Foxconn in 2012.
Since the end of 2012, iDPBG has been trying to deal with all quality issues, some of its measures have been to change its managers Michael Chung Chung for Huilong Chen. But it seems that this change has not been successful since, according to an analyst at Carclays Capital, Ben Reitzes, Chen lacks experience and is not very good at negotiating with Foxconn's main client, Apple.
On April 7 and 15, Foxconn suspended production of more devices at three iDPBG factories in Shenzhen, Shenghou and Taiyuan.
Related links:
- ZDnet
