Here are your Apple rumors and AAPL news items for today:
Rejected: Between five million and eight million iPhones have been returned to Foxconn by Apple (NASDAQ:AAPL) due to poor manufacturing or defects, PatentlyApple notes. The rumor comes from the China Business Journal, which notes that the phones were sent back to Foxconn on March 15 because Apple determined either that their appearance wasn’t up to company standards or that they were malfunctioning. It will cost Foxconn $1 billion to repair or replace the returned phones. Last year, iPhone 5 supplies were constrained due to manufacturing difficulties encountered by Apple’s Asian suppliers. Some consumers have complained that the iPhone 5 is unusually prone to scratching.
Top Spot: Unnamed Apple executives tell Forbes that CEO Tim Cook’s tenure as head of the iPad and iPhone-maker could be nearing its end. The insiders say the company is starting to look for a new chief executive as its share price continues to slide. Cook succeeded the late Steve Jobs when the Apple co-founder died in late 2011. Under Cook, Apple shares soared, hitting an all-time high in September. However, in the months since the release of its iPhone 5, Apple’s share prices has fallen by almost 50%. Worse, Wall Street has lost confidence in the company, with analysts repeatedly slashing share price targets. Recent reports also suggest that sales of the company’s leading iPads and iPhones have declined more than expected due to weakening demand. The company announces its quarterly results on Tuesday and is widely expected to miss its own guidance for the first time in years.
Postponed: Another analyst says that the launch of the iPhone 5S will be delayed, Newsday notes. Citibank (NYSE:C) analyst Glen Yeung says that the next generation iPhone will launch in August or September. Many analysts had expected the company to debut the iPhone 5S in June or July; however, recent reports from a growing number of analysts indicate that the company has encountered manufacturing problems and will have to delay the phone’s launch. Yeung adds that Apple is also planning to launch a retina version of its MacBook Air notebooks. He expects the company to launch a larger screen iPhone next year.
For more about the company, check out our previous Apple Rumors stories.