According to reports, Apple may have rejected anywhere from 5- to 8 million iPhones because the handsets didn’t make Apple’s standards.
Chinese newspaper China Business, reports this is likely the iPhone 5. Apple supposedly returned several units to Foxconn, because they had a “substandard appearance or malfunction” of some sort. Reports claim that this may have cost Foxconn up to $1.6 billion.
According to website CultofMac, this is part of a growing problem with Apple: it’s devices are becoming increasingly complex and difficult to manufacture. The website mentions a quote by a Foxconn official saying that the iPhone 5 is the most difficult device the company has ever built.
However, Foxconn is denying the report. It’s difficult to know what’s accurate sometimes, but Foxconn’s word may be worth believing, unless there is concern for any reason of that information being made public. That said, Foxconn hasn’t been afraid in the past to mention manufacturing difficulties with the handset.