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
131 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
131 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
131 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
131 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
131 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
131 months ago
iPad Pro.
Score: 2 Votes (Like | Disagree)

Top Stories

m1x mac mini screen feature

High-End 'M1X' Mac Mini With New Design and Additional Ports Expected to Launch in the 'Next Several Months'

Sunday August 22, 2021 5:59 am PDT by
Apple can be expected to launch an updated high-end Mac mini with a new design and a faster "M1X" Apple silicon processor in the "next several months," Bloomberg's Mark Gurman reports. In the latest publication of his Power On newsletter, Gurman writes that a new high-end Mac mini, which has previously been reported to feature a new design with additional ports, can be expected to replace...
mac scanner permission error

Apple Says Fix Planned for 'You Do Not Have Permission to Open the Application' Error When Using a Scanner on Mac

Saturday August 14, 2021 6:15 am PDT by
In a newly published support document on its website, Apple has acknowledged an error that some users may receive when they try to use a scanner with a Mac in the Image Capture app, Preview app, or the Printers & Scanners section of System Preferences. A screenshot of the error message from the HP Support Community When attempting to use a scanner with a Mac, Apple said users might get an...
macbookpro13large

macOS Big Sur Update Bricking Some Older MacBook Pro Models

Sunday November 15, 2020 5:33 am PST by
A large number of late 2013 and mid 2014 13-inch MacBook Pro owners are reporting that the macOS Big Sur update is bricking their machines. A MacRumors forum thread contains a significant number of users reporting the issue, and similar problems are being reported across Reddit and the Apple Support Communities, suggesting the problem is widespread. Users are reporting that during the...
original iphone

Phil Schiller Says iPhone Was 'Earth-Shattering' Ten Years Ago and Remains 'Unmatched' Today

Monday January 9, 2017 7:15 am PST by
To commemorate the tenth anniversary of the iPhone, Apple marketing chief Phil Schiller sat down with tech journalist Steven Levy for a wide-ranging interview about the smartphone's past, present, and future. The report first reflects upon the iPhone's lack of support for third-party apps in its first year. The argument inside Apple was split between whether the iPhone should be a closed...
m1 imac orange

New iMac Tidbits: Headphone Jack on Side, Ethernet Port on Power Adapter, Spatial Audio and WiFi 6 Support, No SD Card Slot

Wednesday April 21, 2021 6:38 am PDT by
Apple yesterday announced a completely redesigned 24-inch iMac with the M1 Apple silicon chip. The new iMac, the first major redesign of the Mac desktop computer since 2012, has several changes compared to the previous generation. In the aftermath of the event, a few new features and tidbits may have slipped under the radar, so we’ve compiled this list of some of the less-talked-about...
omg lightning cable comparison

Security Researcher Develops Lightning Cable With Hidden Chip to Steal Passwords

Thursday September 2, 2021 6:59 am PDT by
A normal-looking Lightning cable that can used to steal data like passwords and send it to a hacker has been developed, Vice reports. The "OMG Cable" compared to Apple's Lightning to USB cable. The "OMG Cable" works exactly like a normal Lightning to USB cable and can log keystrokes from connected Mac keyboards, iPads, and iPhones, and then send this data to a bad actor who could be over a...
Top Stories 75 Thumbnail

Top Stories: Last-Minute iPhone 13 Rumors, Apple Announces App Store Changes, and More

Saturday September 4, 2021 6:00 am PDT by
The finish line is in sight! Apple's annual iPhone event is likely just a week or so away and all eyes will be on the company as it unveils the next version of its most popular product line. With any luck, we'll also see the next-generation Apple Watch and perhaps even some new AirPods. Other news this week saw Apple making some more changes to its App Store policies in response to a...
General YouTube Feature 1

YouTube Premium and Music Surpass 50 Million Subscribers

Friday September 3, 2021 2:19 am PDT by
YouTube says it has passed 50 million subscribers for its Premium and Music subscriptions, making it the "fastest growing music subscription" service in the world, according to YouTube's global head of music, Lyor Cohen. YouTube says that it has more than 50 million paying subscribers collectively across YouTube Premium and YouTube Music. The Google-owned service says it attributes this...
iPhone 13 Dummy Thumbnail 2

Full iPhone 13 Feature Breakdown: Everything Rumors Say We Can Expect

Tuesday August 31, 2021 7:50 am PDT by
With the launch of Apple's iPhone 13 lineup believed to be just a few weeks away, we have compiled all of the coherent rumors from our coverage over the past year to build a full picture of the features and upgrades coming to the company's new smartphones. For clarity, only explicit improvements, upgrades, and new features compared to the iPhone 12 lineup are listed. It is worth noting that...
apple wallet drivers license

Apple Announces First U.S. States That Will Let You Add Your Driver's License to Your iPhone

Wednesday September 1, 2021 6:15 am PDT by
Apple today announced the first U.S. states that will be rolling out the ability for residents to add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch. Arizona and Georgia will be the first states to support the feature, with Connecticut, Iowa, Kentucky, Maryland, Oklahoma, and Utah to follow, according to Apple. Apple said select TSA security checkpoints in ...