Employees of iPhone assembler used defective parts to make millions on the side

Employees of iPhone assembler used defective parts to make millions on the side
Genuine iPhone parts are hard to come by, even if you’re in the business of repairing iPhones, but that’s not the case if you’re working at the factory that makes iPhones. Foxconn, the company that assembles most of the iPhones Apple sells, has more than a million employees and it seems some of them figured out a way to line their pockets.

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.

FEATURED VIDEO

12 Comments

1. MsPooks

Posts: 311; Member since: Jul 08, 2019

The odds that only Apple was duped by unscrupulous Chinese vendors are zero. Hopefully, Vietnam doesn't have these issues.

2. Phantom1031

Posts: 267; Member since: Aug 02, 2014

You are so gorgeous.....

4. CantEvenWin

Posts: 22; Member since: Jan 24, 2019

Big oof.

5. MsPooks

Posts: 311; Member since: Jul 08, 2019

Filters. It's all filters. ;)

9. Phantom1031

Posts: 267; Member since: Aug 02, 2014

Anyway these filters work wonders for u, I am not gonna hold my feelings ;)

8. Vokilam

Posts: 1455; Member since: Mar 15, 2018

I dont trust photos anymore - could be a dude these days.

10. Phantom1031

Posts: 267; Member since: Aug 02, 2014

She is not a dude, At least

13. a8674178

Posts: 3; Member since: Dec 20, 2019

In fact,It have

6. Dr.Phil

Posts: 2525; Member since: Feb 14, 2011

It makes you wonder about those stories you hear that seem to occur mainly in China about iPhones that started combusting. I wonder what these defective iPhones look like.

7. tonyv13

Posts: 129; Member since: Jun 07, 2015

Well then..... Hopefully they bring their manufacturing to the US

11. a8674178

Posts: 3; Member since: Dec 20, 2019

The rights of listed companies in the United States have been damaged for many years, resulting in a huge amount of tax revenue per year in the country, so that the United States cannot be great again.I have been in stock for 20 years, and since 2012, I have been tracking the outflow of Apple products. Every year, a large number of new stocks, counterfeits and refurbished products are found on the market. As a result, Apple’s huge maintenance revenue is short. According to my preliminary statistics, at least $3 billion in revenue is lost each year. This is only based on cost. In fact, the shortfall is at least five times the amount.For example, the battery of Iphone X has 600,000 outflows on the market, and the unit price is 32 RMB. However, if Apple repairs a battery, it will charge 2,190 Taiwan dollars (US$70).

12. a8674178

Posts: 3; Member since: Dec 20, 2019

Hi,everyone...I am the Whistler

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.
FCC OKs Cingular's purchase of AT&T Wireless