Former Foxconn Manager Faces 10-Year Prison Sentence for Profiting $1.5M on Stolen iPhones

by

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.

Top Rated Comments

(View all)
Avatar
48 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)
Avatar
48 months ago
5,700 iPhones! Thats a big pocket he got there.
Score: 2 Votes (Like | Disagree)
Avatar
48 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)
Avatar
48 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)
Avatar
48 months ago
And should Tim continue manufacturing products outside of USA? But then again, it could happen in usa.
Score: 1 Votes (Like | Disagree)
Avatar
48 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)

Top Stories

Apple Takes Legal Action Against Small Company With Pear Logo

Saturday August 8, 2020 11:09 am PDT by
Apple is taking legal action against the developers of the app "Prepear" due to its logo, according to iPhone in Canada. Prepear is an app that helps users discover recipes, plan meals, make lists, and arrange grocery deliveries. The app is a spinoff of "Super Healthy Kids," and the founders claim that they are facing litigation from Apple. Apple reportedly takes issue with Prepear's logo, ...

Kuo: Global iPhone Shipments Could Decline Up to 30% If Apple Forced to Remove WeChat From App Store [Updated x2]

Sunday August 9, 2020 10:17 pm PDT by
In a worst-case scenario, Apple's annual global iPhone shipments could decline by 25–30% if it is forced to remove WeChat from its App Stores around the world, according to a new research note from analyst Ming-Chi Kuo viewed by MacRumors. The removal could occur due to a recent executive order aiming to ban U.S. transactions with WeChat and its parent company Tencent. Kuo lays out...

Google Maps Debuts New Apple Watch App and CarPlay Features

Monday August 10, 2020 9:16 am PDT by
Google today announced the launch of several features for Google Maps on Apple products, including new CarPlay functionality and a new Google Maps app that works on Apple Watch. The new Google Maps app for Apple Watch works similarly to the iOS app, allowing Apple Watch owners to get directions for a car, bike, public transit, or on foot. The app supports estimated arrival times and...

Foxconn Reportedly Begins Seasonal Hiring Spree for iPhone 12 Production

Monday August 10, 2020 7:03 am PDT by
Apple's largest manufacturing partner Foxconn has begun its seasonal hiring spree to assist with iPhone 12 production, offering employees who recruit qualified applicants up to a 9,000 yuan bonus, according to Chinese media reports. As usual, Foxconn needs as many hands on deck as possible at its factory in Zhengzhou, China to assist with mass production of the upcoming iPhones. Apple is...

Apple May Release 4G-Only iPhone 12 in Early 2021

Tuesday August 11, 2020 5:28 am PDT by
In a research note shared by Business Insider, Wedbush Securities analysts said that Apple may release a cheaper iPhone 12 in early 2021 with no 5G connectivity. Wedbush initially believed Apple would launch a mix of 4G and 5G iPhone 12 models this fall. Following re-examination of Asian supply chains, analysts Daniel Ives, Strecker Backe, and Ahmad Khalil revised the predictions,...

2020 iMac Teardown Reveals Internal Changes and Similarities

Saturday August 8, 2020 12:44 pm PDT by
A teardown video, shared by OWC, reveals the internal changes in the new 2020 27-inch iMac. The 2020 27-inch iMac was announced earlier this week with 10th-generation Intel Core processors, AMD Radeon Pro 5000 series graphics, up to 128GB of RAM, up to 8TB of storage, a 1080p front-facing FaceTime camera, a True Tone display with a nano-texture glass option, higher fidelity speakers, and...

Apple Believes This German Cycling Path Logo Infringes on Its Own Logo

Wednesday May 1, 2019 9:51 am PDT by
Apple recently objected to the logo of a new German cycling path in an appeal filed with the German Patent and Trademark Office, according to German outlets General-Anzeiger Bonn and Westdeutscher Rundfunk. Apple reportedly takes issue with the logo's green leaf and supposed "bitten" right side, attributes the company believes are too similar to its own logo. The logo, registered with the ...

Apple Seeds First Public Beta of watchOS 7 to Public Beta Testers

Monday August 10, 2020 10:33 am PDT by
Apple today seeded the first public beta of an upcoming watchOS 7 update to public beta testers, one week after seeding the fourth beta to developers and a month and a half after the Worldwide Developers Conference. The update can be downloaded after installing the proper profile from Apple's Public Beta website. watchOS 7 should not be installed on a primary device as it is still an early...

Apple Watch Likely to Adopt MicroLED Display Technology in 3-4 Years

Monday August 10, 2020 2:55 am PDT by
This year's Apple Watch Series 6 is expected to feature an OLED screen like previous models, but a future model is likely to be the first Apple product to adopt MicroLED display technology, albeit not for another three to four years. That's the main takeaway reading between the lines of comments made by the chairman of Epistar, Taiwan's top LED producer, which is reportedly working on a...

Apple Seeds iOS 14 and iPadOS 14 Public Beta 4 to Testers

Thursday August 6, 2020 10:05 am PDT by
Apple today seeded new public betas of upcoming iOS 14 and iPadOS 14 updates to its public beta testing group. Today's software releases, which Apple labels as fourth betas to keep them in line with developer betas, are actually the third betas that Apple has provided and they come two weeks after the prior beta releases. Public beta testers who have signed up for Apple's beta testing...