Former Samsung Manager Reveals Role in Leaking Apple iPad Production Data

primary global research logoBloomberg reports on the recent testimony of former Samsung manager Suk-Joo Hwang, who has revealed his role in leaking secrets on volumes of iPad displays being shipped to Apple as part of an insider trading trial targeting Primary Global Research executive James Fleishman. Fleishman was one of four insiders charged last year with leaking Apple secrets through so-called "expert networks" such as Primary Global Research, which paid industry insiders to provide confidential information and then traded on and sold the information to their own clients.

Hwang, who has been granted immunity, detailed how he provided information to Fleishman on iPad display shipments in December 2009, before the product had been introduced.

Hwang said that during lunch at a restaurant in Mountain View, California, with Fleishman and a hedge fund manager he identified as “Greg,” he gave them confidential information about Samsung’s shipment of liquid crystal display screens it was supplying to Apple. The iPad made its U.S. debut in April 2010, four months after the lunch.

“One particular thing I remember vividly was that I talked about the shipment numbers of Apple, it was about iPad,” he said. “This is in December 2009, before it came out with the tablet PC, they didn’t know the name then, so I talked to them about the tablet shipment estimates in that meeting.”

Hwang notes that he immediately "freaked out" about disclosing the information, feeling that he had spoken too loudly in the restaurant and wondering whether a man at a nearby table who may have overheard the conversation was an Apple employee.

Hwang worked on the side as a consultant with Primary Global Research until August 2010, with his consulting fee having been raised from $200 an hour to $350 in February of that year after he expressed reservations about continuing to provide information following a promotion at Samsung. Hwang was fired by Samsung several months ago as the insider trading scandal unfolded.

Back in July, one of the other insiders charged in connection with the case, Flextronics executive Walter Shimoon, pleaded guilty to leaking iPhone and iPad secrets to Primary Global Research.

Top Rated Comments

kdarling Avatar
135 months ago
It may surprise people to learn how corrupt some parts of Samsung are. They represent around 10% of South Korea's GDP last time I checked. They are a very powerful entity.

If you think they're badly corrupt, you've obviously never lived in New Jersey :)
Score: 6 Votes (Like | Disagree)
sportsfan Avatar
135 months ago
Can you read?

$350 a month - I can't believe it! I don't know how much that "research" firm charged hedge fonds for this kind of information but how naive was that manager? Selling his career for a little bit of petty change? And then even make it official with a "consultant" contract? Oh my goodness - that is almost pathetic - no wait - that IS pathetic. If I would ever do something like that - and I worked for companies with such kind of trade secrets - I would a) not do that over the books b) not meet anywhere near where other employees of any involved company might possibly be and c) get one huge sum in cash. The only problem: I have a too high level of integrity to even do that from the get-go. :D

"Hwang worked on the side as a consultant with Primary Global Research until August 2010, with his consulting fee having been raised from $200 an hour to $350 in February of that year after he expressed reservations about continuing to provide information following a promotion at Samsung. Hwang was fired by Samsung several months ago as the insider trading scandal unfolded.
"
Score: 3 Votes (Like | Disagree)
Gasu E. Avatar
135 months ago
Who really cares... Even with all the "android copycats" and other knockoffs of Apple products, they are killing the so called competition...

Apple stockholders and anyone else who trades legally in Apple stock should care. Inside traders steal from them.

----------

oh okay... reading educates... :o but still, he does get that how often? Once a meeting, maybe for 2h per meeting? That is still not worth the risk since he is paid as "consultant." :D

Like any consultant, he would be billing for time "worked", gathering and analyzing data; not just the time presenting information to his clients. It could be hundreds of hours a year. I assume he is not an idiot, and was charging enough to be compensated for his risks.

----------

If you think they're badly corrupt, you've obviously never lived in New Jersey :)

I just looked at a couple of maps-- the Korean peninsula and NJ actually look pretty similar.
Score: 2 Votes (Like | Disagree)
macnews Avatar
135 months ago
Who really cares... Even with all the "android copycats" and other knockoffs of Apple products, they are killing the so called competition...

This is all about insider trading and nothing at all about competition between iOS and Android. The hedge fund manager was looking to make millions from hedging probably for Apple. Many people expected something was in the works but to have proof not only it existed, but also the expected numbers would be significant information to properly hedge the stock. Millions, if not hundreds of millions made in seconds.
Score: 2 Votes (Like | Disagree)
BornAgainMac Avatar
135 months ago
"...spoken too loudly in the restaurant and wondering whether a man at a nearby table who may have overheard the conversation was an Apple employee."

That is scary. Those Apple employees are dangerous. Nobody in that restaurant would have been seen again. They could use Apple employees in military operations. :eek:
Score: 2 Votes (Like | Disagree)
propea Avatar
135 months ago
iPad Pro.
Score: 2 Votes (Like | Disagree)

Popular Stories

Upcoming Products 2022 Feature

Gurman: Apple Preparing 'Widest Array of New Hardware Products in Its History' for Fall

Sunday January 23, 2022 10:32 am PST by
Apple is working on a number of new products that are set to launch this fall, and Bloomberg's Mark Gurman says that it will be "the widest array" of new devices that Apple has introduced in its history. In his latest "Power On" newsletter, Gurman explains that Apple is working on four new flagship iPhones (iPhone 14, iPhone 14 Max, iPhone 14 Pro, and iPhone 14 Pro Max), an updated low-end Ma...
Questionable Design Decisions

Apple's Most Questionable Design Decisions in Recent Memory

Sunday January 23, 2022 2:59 am PST by
Apple has always emphasized the depth of thought that goes into the design of its products. In the foreword to Designed by Apple in California, a photo book released by the company in 2016, Jony Ive explains how Apple strives "to define objects that appear effortless" and "so simple, coherent and inevitable that there could be no rational alternative." But every once in a while even Apple...
macbook pro 14 16 2021

Three Months After Launch, Apple Still Struggling to Meet Demand for Redesigned 14-Inch and 16-Inch MacBook Pro

Monday January 24, 2022 7:12 am PST by
Three months after their launch, the 14-inch and 16-inch MacBook Pros continue to experience high demand and seemingly short supply, with shipping dates for both models stretching into multiple weeks in several of Apple's key markets. In the United States, the baseline 14-inch MacBook Pro with the M1 Pro chip is estimated to ship in three to four weeks, promising an arrival by at least...
att gigabit internet

AT&T Bringing $180/Month 5-Gigabit Internet to 70 Cities

Monday January 24, 2022 9:20 am PST by
AT&T today announced the launch of upgraded AT&T Fiber plans, which support speeds of up to 5 Gigabits for some customers. There are two separate plans, one "2 GIG" plan and one "5 GIG" plan, available to new and existing AT&T Fiber subscribers. According to AT&T, the new plans are available to nearly 5.2 million customers across 70 metro areas including Los Angeles, Atlanta, Chicago, San...
airpodsinear 1

AirPods Save Woman's Life With Feature Everyone Should Know

Friday January 21, 2022 2:13 am PST by
Apple's AirPods have been credited with saving a woman's life after a potentially fatal fall, People reports. When a 60-year-old florist in New Jersey tripped and hit her head in her studio, she lost consciousness and awoke heavily bleeding. With nobody around to call for help, she realized she had her AirPods in, and used a "Hey Siri" command to call 911. An operator was able to stay on the ...
AirPods Pro Gen 3 Mock Feature ugly yellow

AirPods Pro 2 Could Beat AirPods Max Sound Quality

Monday January 24, 2022 2:15 am PST by
Apple's second-generation AirPods Pro could deliver higher fidelity audio than the AirPods Max over-ear headphones, despite being comparatively small in-ear buds, recent reports have suggested. In a recent note to investors, seen by MacRumors, TF International Securities analyst Ming-Chi Kuo claimed that the second-generation AirPods Pro will offer improved audio quality thanks to support...
iCloud General Feature

Developers Unhappy With Bug Causing iCloud Unreliability

Monday January 24, 2022 10:15 am PST by
A number of developers are upset with an increasingly problematic iCloud server issue that is causing some apps that have implemented iCloud support to fail to sync properly. As outlined on the Developer Forums and on Twitter, there are CloudKit connectivity issues that have been occurring since November. Some users of apps that have iCloud support built in are seeing the following message:...
top stories 2022jan22

Top Stories: Spring Apple Event Rumors, Apple Opposes Sideloading, and More

Saturday January 22, 2022 6:00 am PST by
As we roll into the latter half of January, we're starting to hear more about a potential spring Apple event, which is likely to take place in March or April. There are a number of potential announcements on deck, so an event would be a good opportunity for Apple to get them all out there. We've also been going back and forth on some iPhone 14 rumors, and we've taken a look at a number of...