Terrible state of faulty toy iPads (8)
I believe the answer is:
dystopia
'terrible state' is the definition.
(a dystopia is a terrible state or world)
'faulty toy ipads' is the wordplay.
'faulty' indicates an anagram.
'toy'+'ipads'='toyipads'
'toyipads' is an anagram of 'DYSTOPIA'.
'of' acts as a link.
(Other definitions for dystopia that I've seen before include "Undesirable place" , "there's no worse place" , "Imaginary place where all is bad" , "worst possible place?" , "Imaginary society in which everything is bad" .)