Reports published over the weekend by China Business and the China Times (Via MacRumors) spread the news that Apple has returned up to 8 million iPhones to its manufacturing partner Foxconn, “due to appearance of substandard or dysfunctional problems.”
The reports suggests that this means Foxconn will need to prepare itself for a 1.6 billion yuan hit to cover the cost of correcting the issues, as this process will likely costs nearly 200 yuan.
The reports were denied by a Foxconn spokesman Simon Hsing on Saturday. Hsing said that the company will look into management and product yield rate issues mentioned in the report related to one of their subsidiaries.
According to the report, Futaihua Precision Electronics Co (Foxconn subsidiary), has begun producing iPhones, with each of its assembly lines churning out 1,000 to 2,000 units per day, although the plant’s yield rate is only 95%.