Apple is believed to have rejected millions of iPhone devices, returning them to manufacturer Foxconn citing quality concerns.
China Businessreports that the US firm rejected between five and eight million iPhone handsets "due to appearance of substandard or dysfunctional problems."
Whilst it remains unknown which model iPhones were returned, the news is likely to have significant impacts for both companies. The report estimates that Foxconn could take a loss of around $1.6 billion over the issue.
MCV's sister site PCR has the full story.