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Was Foxconn Trying To Slip Apple Substandard iPhones?

We all know how brutal Foxconn is  with its employees, but every once in a while a disgruntled “staffer” will leak information about the climate inside the tech manufacturing giant for Apple. While this is just rumor and unsubstantiated,  The Register cites a report in China Business that anywhere from 5-8 million unidentified handsets where rejected by Apple and sent back. It’s not clear what version of the iPhone it was, whether the iPhone 5 or 4S, but at an estimated cost of $200 bucks each, Foxconn is going to have to take a huge hit worth up to $1.5 billion.

Now, there is no doubt the total hit would be that much for Foxconn as most of the components should be able to be reused. It is said that the rejected iPhone were sent back “due to appearance of substandard or dysfunctional problems.”.

With Apple stocks up 6% to 405 this morning, rumors even as shaky as this cannot help the 800 pound gorilla much.