Conflicting reports claim Apple may have returned 5 million faulty iPhone 5s, factory denies

Conflicting reports claim Apple may have returned 5 million faulty iPhone 5s, factory denies
As you might expect, right now this report is little more than deciding which side you want to believe, and we may never get the real story. There are conflicting reports coming out that say Apple may have had to return 5 million faulty, malfunctioning, or damaged iPhone 5 handsets, but the factory denies such reports.

This all started when The China Business Journal quoted an unnamed source at Foxconn (Hon Hai's trade name in China) saying that Apple had returned 5 million iPhone 5 handsets. The report said that the devices were returned because they were either faulty or didn't live up to Apple's cosmetic standards (which means the number could include the simple issue of a scuffed chamfered edge.) Oddly, the report then said that the number could have reached 8 million, citing the same source, but giving no additional information. 

If accurate it will cost Foxconn 1 to 1.6 billion Chinese yuan (~$161.8 to $259 million) to repair the defective handsets. Foxconn spokesman Simon Hsing denied the figures mentioned in the report, but said that there would be an investigation into the factory's yield rate, which is said to be around 95%. 

For a bit of perspective, Apple has reported selling a total of 74.7 million iPhones in the past two quarters. Even if we were to take the number as only iPhone 5 handsets, 5 million returns would be 6.7%, which is pretty close to the 95% yield rate that Foxconn claims. Of course, this number includes sales of older iPhones and not just the iPhone 5, so if the reports are true, the yield rate seems to be lower than Foxconn claims.

Related phones

iPhone 5
  • Display 4.0" 640 x 1136 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A6, Dual-core, 1300 MHz
  • Storage 64 GB
  • Battery 1440 mAh(8h 3G talk time)



1. Ninetysix

Posts: 2965; Member since: Oct 08, 2012

75million iphones sold in the past 6 months. Apple's not dying anytime soon.

2. Luuthian

Posts: 332; Member since: Sep 09, 2011

Of course not! Just because their stock falls doesn't mean they're going to die! They've actually been profitable despite everyone's grumbling. They're just not as profitable as they once were. If Apple is on a death knell it would take YEARS. I mean crap, look at Nokia and HTC. People keep summoning them to the grave but they've been around for time still. Companies don't just up and die. it takes time.

5. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

I agree with you! But nobody is gonna summon HTC to the grave right now, because the One is here, and many peoples are craving for that! Nokia, hmm.........we need to wait for the Catwalk and EOS before saying anything. But now, BlackBerry is the target, many people keep summoning BlackBerry to the grave. But that doesn't help, none of these manufacturers are gonna die, including Apple! They are all safe right now! And to the people who said that "die Nokia" "go to hell BlackBerry" etc. Those peoples have a evil heart! Why not give them a try to "stand up" again? And yes, I agree with you, companies don't just up and die. It takes time. :)

12. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

Very good post Xperia. Companies dying means people losing their jobs, families suffering, and a negative impact on the economy. Who wants that? +1

13. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

I agree with you Dark! +1

22. Timmehor

Posts: 599; Member since: Mar 09, 2013

Very true, really the first company to die off (for now) is Motorola. Nokia was on the edge of losing it, with -$1 billion. But Nokia were lucky to have huge power in the patent, navigation, and telecommunications market which were built over the last 30 years. There's is more chance of HTC dieing off because of the lack of power and strength in other markets, HTC are really only smartphones, IF they were to lose grip on their smartphone standings they would be in HUGE trouble. Samsung, Apple, Nokia, Sony ALL have power/strength in other tech markets, meaning if they were to lose the smartphone market, they would have enough revenue coming in from other markets to keep them alive and make a comeback.

24. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

I agree with you!

25. piyath

Posts: 2445; Member since: Mar 23, 2012

Don't be hurry.. Just wait and see what is gonna happen. Who knows whether htc one will also be another flop by htc....... Be pateint lol

7. TechBizJP08

Posts: 495; Member since: Mar 25, 2013

Very well said. If one company dies, means someone is going to buy the company. Just like Motorola. :)

10. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Motorola? (sigh) It "disappeared" in my country! Here's the link, remember, there are two sites, just click the (left one) Motorola Mobility "enter site", then there will be a letter!

3. eliasafram7

Posts: 83; Member since: Mar 18, 2013

and which source said that????

4. eliasafram7

Posts: 83; Member since: Mar 18, 2013

sorry my mistake it's mentioned in the text i haven't notice it

8. jroc74

Posts: 6023; Member since: Dec 30, 2010



Posts: 4851; Member since: Apr 13, 2012

Really, from 650p in shares, tumbling down to 398p! In the coming months, shares will be in decline, untill the iP5s is out! But why would users buy the same phone? ™

11. Hemlocke unregistered

Ask Samesung.

15. taz89

Posts: 2014; Member since: May 03, 2011

I guess someone needs an eye check if they can't tell the differences between the s3 and am not saying they don't look similar cause they do just like any other phones in the same brand do like lumia brands and droid brand etc but in Noway do they look the same as the 3g and 3gs did and 4 and 4s did and most likely how the 5 and 5s may look the same...let's not forget when apple went from the 4 to the 4s the jump was only camera and chip, the s3 and s4 has a new but similar design, new and higher resolution screen, faster chip, new camera, bigger battery etc so the s3 to s4 is a bigger jump than what apple did in 2 generations from the iPhone 4 to the 5, if u list all changes Samsung did in 1 year to what apple did in 2 years, Samsung phone has more changes.

6. _Bone_

Posts: 2155; Member since: Oct 29, 2012

The deny all 5 million?

17. amats69

Posts: 1527; Member since: Nov 12, 2012

for me..Defective units is actually normal esp on the first to 2nd batch of units happened to all mobile manufacturer (actually not only mobile manufacturers)... the big deal for me here is if it is true then apple should admit it not to deny it (thats if its true)..they should give a valid explanation to the customers and most important is they should replace it with new one (after sales service is really important)

18. Ninetysix

Posts: 2965; Member since: Oct 08, 2012

RTFA next time.Apple did not comment on the article. All the information is coming from Foxconn.

19. amats69

Posts: 1527; Member since: Nov 12, 2012

dude no need to say bad words coz it doest even made you smart... thats why i said "(thats if its true)"

20. javac

Posts: 102; Member since: Mar 04, 2013

make* Because* doesn't* that's* X2

21. stealthd unregistered

This doesn't really have anything to do with Apple's customers.

23. Taters

Posts: 6474; Member since: Jan 28, 2013

LOL You HTC fanboys are hilarious. Some manufacturers have very little defect rates because their quality control is really high. Just because it is common for all HTC phones to be full of defects with the first couple of batches it doesn't mean that is true for everyone. Some manufacturers test their products properly unless they are rushed to meet a deadline. Besides, 5 million is totally not normal, that is a ridiculously high defect rate, even by HTC standards or lack of.

* Some comments have been hidden, because they don't meet the discussions rules.

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