Apple reportedly investigated the iPhone supply chain in China, but found no evidence of wrong doing

Apple reportedly investigated the iPhone supply chain in China, but found no evidence of wrong doing
According to a report in today's Wall Street Journal, earlier this year Apple investigated its supply chain, looking for misconduct among its suppliers. The U.S. based tech giant reportedly shook up its suppliers in China by looking for evidence of kickback schemes and bribes. The investigation also rattled Apple's own employees in China since any indication of wrong doing could have involved the company's own employees.

Suppliers that were in Apple's crosshairs still provided the tech giant with parts, which was in Apple's best interests. Finding a new supplier for iPhone components on such short notice would have been hard to do. As it turned out, no supplier had to be dropped; Apple told the Journal that it found no evidence of kickbacks or bribes. Still, an Apple executive involved in the procurement of parts and two junior-members of the supply-management team in China left the company in May. According to people familiar with Apple's probe, this was around the same time that Apple started to sniff around one supplier, questioning it about possible kickbacks paid to Apple employees.

Back in 2010, an Apple global supply manager named Paul Shin Devine was accused of receiving over $1 million in kickbacks from six Apple suppliers in Asia. In the U.S., he was arrested, and after admitting to receiving the money from the suppliers, he was sentenced to a year in prison. He was also ordered to pay $4.5 million in restitution


Apple's in-house rules prevent its employees from accepting gifts and meals from suppliers. Apple also has a code of conduct for suppliers, which is posted online. It states the company's positions on a number of issues from how suppliers treat their work force (no discrimination and harassment is allowed) and notes that Apple will come down hard on suppliers who use underage labor and overwork and underpay employees. In addition, Apple writes that suppliers "shall not engage in corruption, extortion, embezzlement, or bribery to obtain an unfair or improper advantage." Still, with the amount of money at stake, Apple must wonder if the temptation is too much for some suppliers and employees.

FEATURED VIDEO

42 Comments

1. darkkjedii

Posts: 31310; Member since: Feb 05, 2011

Didn't find any, or didn't disclose it? Apple's been caught with its hand in the cookie jar before, so no automatic pass.

2. lyndon420

Posts: 6827; Member since: Jul 11, 2012

Likely didn't disclose it. Notice how they mentioned 3 people associated with the supply line left in May? There was definitely something going on, and those 3 people probably got advance notice of Apple's 'investigation'.

32. rouyal

Posts: 1583; Member since: Jan 05, 2018

29000+ posts since 2011. How does it feel to have thrown away so much of your life?

40. Atechguy0

Posts: 918; Member since: Aug 03, 2018

Well, why don't you tell everyone here what it feels like rouyal.

41. Venom

Posts: 3723; Member since: Dec 14, 2017

He has a point though.

42. darkkjedii

Posts: 31310; Member since: Feb 05, 2011

The next time I’m para sailing in Mexico, or Whale watching from a cruise ship, ya know traveling the world...I’ll let you know ;)

3. Venom

Posts: 3723; Member since: Dec 14, 2017

Apple and Samsung have both been guilty of some shady things in China. A little transparency goes a long way.

27. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Yea, like metting the Government or any company investigate themselves. Like how cops in eastgate themselves and how murdering cops never get convicted. Or like how FBI is investigating Trump, bit no charges yet. Apple investigating themselves...hahahaha.

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.