Acronym. "Borked out of box." Refers to an item or product, most usually something technological (e.g., flash drive, hard drive, etc.) that is broken/non-functional from the moment you open the box. Ergo, it is borked out of box.
"The goddamn thing is BOOB!"
"It's a flash drive, man."
"No, dude--borked out of box! Shit's broken!"