A former senior Foxconn manager was recently indicted for stealing 5,700 iPhones in China to pocket around $1.56 million. Factoring in his accomplices, the entire scheme made $2.2 million between 2013 and 2014 by stealing only the iPhones which were supposed to be scrapped on the manufacturing line, and selling them to various shops in China, according to a report by Asia One (via Business Insider).

The ringleader, identified only by his family name Tsai, was reported as having instructed eight other employees to smuggle out thousands of iPhone 5 and iPhone 5s devices in order to sell them illegally. The operation was caught during an internal audit of the Shenzhen-based Foxconn factory, and Tsai was arrested this year for running the operation, and then released on bail.

iphone5sstack
Tsai has now been charged with breach of trust and faces a maximum of ten years as a jail sentence if found guilty. It wasn't made clear when the final verdict on the matter will be reached.

Tsai and his accomplices sold the testing phones, which were supposed to be scrapped, to stores in Shenzhen and made nearly Tw$50 million (S$2.2 million) from 2013 to 2014, said the New Taipei district prosecutor's office. Foxconn reported the case to Taiwanese authorities following an internal audit and Tsai was questioned after he returned to the island earlier this year and was released on bail.

In August, it was reported that Foxconn's profits had declined 31 percent in the second quarter of 2016, affected by the iPhone sales slump Apple faced at the same time this year. For the entire quarter, Foxconn made 17.7 billion New Taiwan dollars, down from NT$25.7 billion a year prior.

Related Forum: iPhone

Top Rated Comments

miknos Avatar
95 months ago
If Apple were a government company, that thief would be dead! Imagine $1.5mil in China! I would move to Thailand to get 5 wives 30years my junior (maybe a ladyboy since I don't like to discriminate) and eat shrimp and heavy cocktails everyday! Don't know the laws but also the best painkillers money can buy!
Score: 9 Votes (Like | Disagree)
mejsric Avatar
95 months ago
5,700 iPhones! Thats a big pocket he got there.
Score: 2 Votes (Like | Disagree)
DonutHands Avatar
95 months ago
$2.2 mil total profit. 5700 phones averaging to about $400 street price sounds about right to me. Have to consider these may have varied in condition and capacity. Probably not packaged for retail either.
Score: 1 Votes (Like | Disagree)
avtella Avatar
95 months ago
And should Tim continue manufacturing products outside of USA? But then again, it could happen in usa.
I remember when I ordered my LG G2 from Sprint and a day later it was said that a truck full of them was stolen (US), guy abandoned the truck with the phones still there and ran lol. So yeah it can happen here too.
[doublepost=1480709193][/doublepost]
$263 per phone for a dodgy phone is quite a lot of money.
[doublepost=1480708727][/doublepost]
What slave labour? He goes to jail, I don't think he will have to do any slave labour.
I think NBC or another channel did an investigation on counterfeit products in China a while back. The police would go to the homes of the accused have a nice chit chat drink tea "arrest" them and then release them fairly quickly. When asked about the laxity one of the officers pretty much said companies should just deal with it. It's probably worse legally in this case where the guy was outright stealing but I highly doubt it's to the extent some imagine (i.e. hard labor).
Score: 1 Votes (Like | Disagree)
pat500000 Avatar
95 months ago
And should Tim continue manufacturing products outside of USA? But then again, it could happen in usa.
Score: 1 Votes (Like | Disagree)
I7guy Avatar
95 months ago
And should Tim continue manufacturing products outside of USA? But then again, it could happen in usa.
Exactly we know Bernie madoff was above board.
Score: 1 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...
M3 iPad Feature 3

New iPads Likely to Begin Shipping in April

Monday March 18, 2024 9:52 am PDT by
Apple's new iPad Pro models with OLED displays will likely begin shipping to customers in April, according to information shared today by Ross Young, CEO of display industry research firm Display Supply Chain Consultants. Bloomberg's Mark Gurman also said the new iPad Pro models might not ship until "deeper" into April in his Power On newsletter on Sunday:I've repeatedly said that new...
iOS 17 Passkey With Apple ACCOUNT Feature

'Apple ID' Expected to Change to 'Apple Account' Starting With iOS 18

Sunday March 17, 2024 7:13 am PDT by
MacRumors was first to report that Apple was planning to rebrand "Apple ID" to "Apple Account" across its software platforms and websites like iCloud.com as early as this year, and now Bloomberg's Mark Gurman has corroborated this change. A mockup of the new Apple Account branding In his Power On newsletter today, Gurman said the new "Apple Account" branding will start to be used later this...