Image credit: @nukamari.
Foxconn is expected to spend 200 yuan ($32.40) to reprocess each defective iPhone, resulting in extra expenditures of 1 billion yuan or about two-thirds of the integrated Digital Product Business Group (iDPBG)’s profits in 2012, according to the report. The iDPBG is a division of Foxconn that is responsible for manufacturing the iPhone.
Tech in Asia is skeptical about whether Foxconn will really suffer anything like a 60 percent drop in profits, or whether the phones even exist:
[The numbers sound] grim, but it’s worth keeping in mind that as of yet, none of these numbers are official. It’s possible that the 200 RMB per phone estimate is far too high, although it’s also quite possible the phones will cost more than that to fix. It’s also possible that none of this is even true; while it has been widely reported in the Chinese tech press, the Chinese tech press has been known to make stuff up, and neither Apple or Foxconn have confirmed this story. We’ve reached out to Apple for comment and will update this story when the company responds (which we expect to be never).