“Details of just what went wrong are sketchy, as the source for this tale is an anonymous Foxconn staffer chatting to China Business,” Simon Sharwood reports for The Register.
“That report, after being forced through a couple of translation engines, suggests Apple sent back at least five million iPhones, and maybe as many as eight million, ‘due to appearance of substandard or dysfunctional problems,’” Sharwood reports. “With a cost to manufacture of $US200 apiece, Foxconn is apparently preparing to take a hit of up to $1.6bn to cover the cost of making replacement handsets.”

Sharwood reports, “China Business is silent on which model of iPhone failed Apple’s quality tests.”

Did someone move this or was I just imagining that it used to be "In the News" section?

This is good news for everyone (well, apart from Foxconn's bottom line). Probably one of the reasons why Apple are starting to move the manufacture of certain product lines back to the US where they can probably keep a closer eye on things.