Employees of iPhone assembler used defective parts to make millions on the side
Taiwan News reports that Foxconn has launched an internal investigation after allegations that several staff members on management positions at the company have created a scheme for distribution of iPhone components.
The employees are said to have sold defective iPhone parts to another company which assembled them into handsets and sold them with the help of a Taiwanese businessman. The flawed parts should have otherwise been destroyed which makes it harder to keep a proper account of them. The operation appears to have been quite large as the suggested profits it brought are estimated at about $43 million.
Another report from local media quotes an email from the alleged whistle-blower that brought the fraud to light. According to the email, the scale is much larger, with damages to Apple amounting to nearly $3 billion. The email was apparently sent directly to Tim Cook and then forwarded to the company’s Business Assurance & Audit team, which is now involved in the investigation.
Needless to say, Apple takes things like that extremely seriously. Besides the financial loses such activities cause, having iPhones with defective parts in circulation can damage the brand’s name, which is its most valuable asset.
If the investigation concludes there was a massive leak of iPhone parts, Foxconn will surely face significant repercussions. We’ll be keeping an eye on how this story develops in the upcoming months.
Posts: 311; Member since: Jul 08, 2019
posted on Dec 19, 2019, 6:10 AM 0
Posts: 267; Member since: Aug 02, 2014
posted on Dec 19, 2019, 7:01 AM 2
Posts: 3; Member since: Dec 20, 2019
posted on Dec 20, 2019, 9:33 PM 0
PhoneArena Comments Rules
A discussion is a place, where people can voice their opinion, no matter if it is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
- Off-topic talk - you must stick to the subject of discussion
- Trolling - see a description
- Flame wars
- Offensive, hate speech - if you want to say something, say it politely
- Spam/Advertisements - these posts are deleted
- Multiple accounts - one person can have only one account
- Impersonations and offensive nicknames - these accounts get banned
Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a post should be moderated - please, report it.
Have a question about the rules or why you have been moderated/limited/banned? Please, contact us.
Send a warning to post author
Send a warning to Selected user.
The user has 0 warnings currently.
Next warning will result in ban!
Ban user and delete all posts
Message to PhoneArena moderator (optional):