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
76 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
76 months ago
5,700 iPhones! Thats a big pocket he got there.
Score: 2 Votes (Like | Disagree)
DonutHands Avatar
76 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
76 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.
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$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
76 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
76 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)

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